The concept of 'Matching Principle' implies that: MCQ with Answer and Explanation

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The concept of 'Matching Principle' implies that:

A. Assets should match liabilities

B. Cash inflows must match cash outflows

C. Expenses of a period must be matched with revenues of the same period

D. Debits must always equal credits

Answer: Option C

Solution (By JKExamLibrary)

The matching concept ensures that all expenses incurred to earn a specific revenue are recognized in the same accounting period to find the true profit.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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The rule 'Debit the receiver, Credit the giver' applies to:

A. Real accounts

B. Personal accounts

C. Nominal accounts

D. All accounts

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Correct Answer: Option B

Explanation:
This rule is for personal accounts.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2 Report Error

The 'Indian Accounting Standards' (Ind AS) are issued by:

A. RBI

B. SEBI

C. MCA (Ministry of Corporate Affairs)

D. ICAI

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Correct Answer: Option C

Explanation:
Ind AS are notified by the Ministry of Corporate Affairs under Companies Act.

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A 'Social Audit' differs from financial audit as it:

A. Examines social and environmental performance

B. Ignores stakeholders

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D. Is for tax purposes

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Correct Answer: Option A

Explanation:
Social audit evaluates non-financial aspects like social impact.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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