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प्रश्न
According to this principle, cost of a particular period should be charged from the revenue of same period only.
पर्याय
Matching principle
Principle of full disclosure
Dual aspect principle
Realisation concept
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उत्तर
Matching principle
Explanation:
The matching principle states that expenses should be recorded and matched with the revenues of the same period in which they were incurred. This principle ensures that income statements reflect the true profitability of a period by aligning the costs associated with generating revenue with the revenue itself.
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संबंधित प्रश्न
Justify the following:
Every transaction is recorded in at least three accounts.
GAAP stands for ______.
Accounting principles are necessary due to which of the following reasons?
On the basis of this concept, only those transactions are recorded in accounts which can be expressed in terms of money.
This concept assumes that the business will continue to exist for a long time in the future.
This principle suggests that every debit has a corresponding and equal credit.
“Every transaction has two effects.” (with reference to the concept of Accounting). Give a reason either for or against.
"Fixed assets should be valued at the market price." Comment.
"Every transaction affects at least three accounts." Comment.
"Accounting records serve as a source of information to the creditors of an organisation". Comment.
