According to which of the following concepts for determining the net income from business all costs ...........

Principles of Accounting & Financial Management Concepts of Accounting

According to which of the following concepts, for determining the net income from business, all costs which are applicable to revenue of the period should be charged against that revenue?

matching concept

cost concept

money measurement concept

dual aspect concept

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Explanation:

The matching concept is an accounting practice whereby firms recognize revenues and their related expenses in the same accounting period. Firms report "revenues," that is, along with the "expenses" that brought them.

The purpose of the matching concept is to avoid misstating earnings for a period.
The business entities follow this concept mainly to ascertain the true profit or loss during an accounting period.This leads to either overcasting or undercasting of the profit or loss, which may not reveal the true efficiency of the business and its activities in the concerned accounting period.