What is matching concept? Why should a business concern follow this concept? Give reasons for your answer.

Explanation

The matching idea is associate accounting observe whereby corporations acknowledge revenues and their connected expenses within the same accounting amount. corporations report "revenues," that is, at the side of the "expenses" that brought them. the aim of the matching idea is to avoid misstating earnings for an amount.


The business entities follow this idea primarily to establish verity profit or loss throughout associate accounting amount. This results in either overcast or under casting of the profit or loss, which can not reveal verity potency of the business and its activities within the involved accounting amount.