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Question
According to this principle, cost of a particular period should be charged from the revenue of same period only.
Options
Matching principle
Principle of full disclosure
Dual aspect principle
Realisation concept
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Solution
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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