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Commerce · Q2741

Accounting

Graduate and Post Graduate · Commerce · question 2741

Q2741

Assertion (A): The matching concept requires that costs should be recognised as expenses in the period in which revenue is realised Reason (R): There may not be a matching between expenditure and expense over a short period In the context given above, which one of the following is correct?

A.
Both A and R are true, and R is the correct explanation of A
B.
Both A and R are true, but R is not a correct explanation of A
Answer
C.
A is true, but R is false
D.
A is false, but R is true

Answer: Option B

Solution

Answer: Option B
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