while preparing final accounts, accounts should show accruals and prepayments.the net amount for the financial year should be shown in the final accounts
By matching your income with the expenses of a given period.. you do not over-state nor under-state the value of the business thus giving you the "true" profit of the business.
By matching your...
Prudence concept tends to understate the profit . depreciation is a tool through which we record our losses , which means that our profit is declining .This means that depreciation is a supportive...
The Matching Concept: A significant relationship exists between revenue and expenses. Expenses are incurred for the for the purpose of producing revenue. In measuring net income for a period, revenue...