Define Matching Concept Give Reason Why a Business Concern Should Follow this Concept

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.