Question 2
Accounting Concepts and ConventionsThe accounting convention which states that the performance of a business should be determined by matching all expenses against all revenues is
- A.accruals
- B.materiality
- C.objectivity
- D.periodicity
Show the answer and explanation
Answer: A (accruals)
Explanation
The accruals (matching) concept matches the expenses of a period with the revenue of the same period.