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Commerce · Q309

Accounting

Graduate and Post Graduate · Commerce · question 309

Q309

Accounting is the process of matching

A.
Benefits and costs
B.
Revenues and costs
Answer
C.
Cash inflows and outflows
D.
Potential and real performance

Answer: Option B

Solution

Answer: Option B
Solution:
Accounting is the process of matching Revenues and costs. The matching concept is an accounting practice whereby firms recognize revenues and their related expenses in the same accounting period. Firms report "revenues," that is, along with the "expenses" that brought them.