Income Statement

Income Statement

Matching Concept

The concept only studied under the accrual accounting. The main aim is that the revenues should be matched Along with the incurred expenses in the time period, and both of them would be reported in the matched time. This means that the incurred expenses would only be recorded when they are actually occurred. This means that if a person Mr. A owned a store and purchase some items with an intention to sold them, Mr. A wouldn't record those expenses until they would be sold the items against the cash revenues. Further, Mr. A is only entitled to ...