The matching concept requires that: MCQ with Answer and Explanation

Question Report Error

The matching concept requires that:

A. Profits should match cash

B. Assets should equal liabilities

C. Expenses should be matched with revenues of the same period

D. Debits equal credits

Answer: Option C

Solution (By JKExamLibrary)

Matching principle states that expenses incurred to earn revenues should be recognized in the same accounting period.

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

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Practice More Accountancy and Book Keeping Questions

Question #1 Report Error

A: The Public Account of India includes Provident Funds. R: The government can withdraw money from the Public Account without parliamentary approval. Choose the correct option.

A. A is false but R is true

B. A is true but R is false

C. Both A and R are true and R is the correct explanation of A

D. Both A and R are true but R is NOT the correct explanation of A

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Correct Answer: Option C

Explanation:
The Public Account holds money like Provident Funds where the government acts as a banker. Since these funds belong to others, the government can make payments from this account without parliamentary approval. R correctly explains the nature of the account.

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