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Question

As per ______ concepts in order to determine the profit earned or loss suffered by the business in a particular defined accounting period, it is necessary that expenses of the period should be matched with the revenues of that period.

A
Accrual concept
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B
Realization concept
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C
Accounting period concept
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D
Matching concept
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Solution

The correct option is D Matching concept
Matching concepts states that the revenue of the period should be matched with the respective expenses

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