Multiple choice

Which of the following accounting concepts suggests that to find out the profitability, the expenses incurred to generate revenue are to be matched against that revenue?

  1. Accounting period concept

  2. Money measurement concept

  3. Value added concept

  4. Matching concept

  5. Legal aspect concept

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

This accounting concept suggests that to find out the profitability, the expenses incurred to generate revenue are to be matched against that revenue.