Income is measured on the basis of ........

Accountancy (Phase -I & II) Financial statement analysis

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Income is measured on the basis of

Cost concept

Matching concept

Consistency concept

None of these

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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.