What is matching concept? Why should a business concern follow this concept? Discuss.

Explanation

The matching conception is Associate in Nursing accounting observe whereby corporations acknowledge revenues and their connected expenses within the same accounting amount. corporations report "revenues," that is, together with the "expenses" that brought them. the aim of the matching conception is to avoid misstating earnings for an amount.


The business entities follow this idea principally to determine verity profit or loss throughout Associate in Nursing 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.