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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
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.
GAAP stands for ______.
It is due to this concept that financial statements are prepared at regular intervals, generally one year.
Explain the money measurement principle of accounting.
Explain The Dual Aspect Principle.
Explain Accounting Period Concept.
Why are Generally Accepted Accounting Principles (GAAP) needed?
Explain the complete disclosure principle.
Explain the expense principle.
