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Answer: The matching concept means that the expenses done in the accounting course should match the revenue earned in that particular period.
Business concerns should follow this particular concept as follows:
Portrays the financial mark of the business
As expenses and the revenue are matched, the profit or loss statement is not under or overstated.
Determination of capital assets expenditure is not possible over one accounting period. So, depreciation is more suitable for calculating loss or profit statements.
Guarantee the transactions occurring in a particular accounting period, although identified in another, will be identified for the period they first occurred.
