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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
What does GAAP stand for in Accounting?
Explain the Business Entity Concept.
Justify the following:
Every transaction is recorded in at least three accounts.
The retirement of manager of the company cannot be recorded in the book of accounts, because it is not possible to estimate the financial effect of retirement. Which accounting principle would be applicable for the above statement?
Accounts should disclose all material information (with reference to the concept of accounting). Justify either for or against by giving two reasons.
"Accounting records serve as a source of information to the creditors of an organisation". Comment.
Explain matching principle of accounting.
Explain The Dual Aspect Principle.
Why are Generally Accepted Accounting Principles (GAAP) needed?
Explain the complete disclosure principle.
