Question

According to which of the following concepts, while determining the net income from business, all costs which are applicable to revenue of the period should be charged against that revenue____________.

• A. Matching concept
• B. Cost concept
• C. Money measurement concept
• D. Dual aspect concept

Answer 1

The correct option is A Matching concept

According to matching concepts, while determining the net income from business, all costs which are applicable to revenue of the period should be charged against that revenue.

In accrual accounting, matching concept states that expenses should be recorded during the period in which they are incurred, regardless of when cash transfer incurs.