PRC-1 · Chapter 1 · Question 8 of 100
The accounting practice of ensuring that expenses related to revenue are reported in the exact same period when the revenue is recognized is an application of the:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Matching concept
Explanation
The matching concept requires that income and expenses that relate to each other are matched together and reported in the same accounting period. This ensures a true and fair view of profitability.
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