Matching concept is based on: Revenue- ________= Profit a) Liability b) Expense c) Asset d) None of - (b) expense Description: According to the matching concept all expenses matched with the revenues of that period should only be taken into consideration. In the financial statements of the organization if any revenue is recognised then expense related to earn that revenue should also be recognized. This concept is based on accrual concept as it considers the occurrence of expenses and income and do not concentrate on actual inflow or outflow of cash. Revenue- Expenses= Profit - Fundamentals of Accounting Interview Questions and Answers

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Question: Matching concept is based on: Revenue- ________= Profit a) Liability b) Expense c) Asset d) None of these

Answer: (b) expense
Description: According to the matching concept all expenses matched with the revenues of that period should only be taken into consideration. In the financial statements of the organization if any revenue is recognised then expense related to earn that revenue should also be recognized. This concept is based on accrual concept as it considers the occurrence of expenses and income and do not concentrate on actual inflow or outflow of cash.
Revenue- Expenses= Profit

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Question: Matching concept is based on: Revenue- ________= Profit a) Liability b) Expense c) Asset d) None of these

Answer:

(b) expense
Description: According to the matching concept all expenses matched with the revenues of that period should only be taken into consideration. In the financial statements of the organization if any revenue is recognised then expense related to earn that revenue should also be recognized. This concept is based on accrual concept as it considers the occurrence of expenses and income and do not concentrate on actual inflow or outflow of cash.
Revenue- Expenses= Profit Source: CoolInterview.com

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