Assigning revenues to the accounting period in which goods were sold or services rendered and expenses incurred is known as
passing of entries
consistency convention
matching concept
adjusting for revenue
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Discussions (37)
Yes,matching concept states dat all revenue generated should be matched against expenses incurred.,in order to ascertain d net profit.
'Match' used here does nt mean to add d revenue with d expenses,rather it is an accounting term used to show that d expenses ar to b deducted 4rm d grosses to get the net profit.
yeap, matching concept coz
The Matching Concept:
A significant relationship exists between revenue and expenses. Expenses are incurred for the for the purpose of producing revenue. In measuring net income for a period, revenue should be offset by all the expenses incurred in producing that revenue. This concept of offsetting expenses against revenue on the basis of "causes and effect" is called the Matching Concept.
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It is definitly Matching concept...it is necessary to match expenses against revenue so that profit/loss is not over or under stated.
infact am happy am part of this guru group.the answer is actually c cos the revenue generated by an organization determines the net income for the year and that is Matching concept
Yep,d answer is c. Cos matching concepts state dat d revenue for a particular period should b match 2gether wit d expenses of d same period in other to determine d NET PROFIT of dat perticular period....
Matching concept is an accounting concept in which revenues and expenses of government, individual and organization must be corresponded that is, it used to be ascertained net income and it usually performed by government.
yes it's C,bcos revenue and expenses incurred in a particular period ar nt carry to d next accounting period
Here is an explanation:
Accounting measures performace. Thus, for ease of analysing financial transactions there is need to break the recording into periods usually aa year this is done for convenience.
