Question 5 of 23beginner🧠 RememberFill in the Blanks1 mark

Recognition of expenses in the same period as associated revenues is called _____ concept.

Correct Answer

Matching

Exercise: Test Your Understanding - II | Q: 1 | (Page 11)
For More Understanding

Explanation

The 'Matching Concept' explicitly states that expenses incurred in an accounting period should be matched with revenues during that period. This ensures that the revenue and the expenses incurred to earn that revenue belong to the same accounting period, allowing for the correct calculation of profit or loss.

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