Accounting Concepts Quiz

To calculate the net profit by matching revenue earned with expenses incurred during a specific period (correct)

To consider the recognition of expenses as well as revenues

To differentiate between the right to receive cash and actual receipt of cash

To recognize outstanding prepaid and pre-receival expenses

Periodicity concept

Accrual concept (correct)

Matching concept

Realisation concept

The matching concept recognizes outstanding prepaid and pre-receival expenses, while the accrual concept calculates net profit.

The matching concept considers the recognition of expenses as well as revenues, while the accrual concept differentiates between the right to receive cash and actual receipt of cash.

The matching concept calculates net profit, while the accrual concept recognizes outstanding prepaid and pre-receival expenses. (correct)

The matching concept differentiates between the right to receive cash and actual receipt of cash, while the accrual concept calculates net profit.