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The broad principle that requires expenses to be reported in the same period as the revenues that were earned as a result of the expenses is the?
Wiki User
∙ 13y ago
The accruals concept, otherwise known as the matching concept as it's purpose is to match expenses and revenue to each other in the correct accounting period.
Wiki User
∙ 13y ago
Sophie Cota
Cost principal
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How are revenues and expenses reported on the income statement under the accrual basis of accounting?
Revenues are reported on the income statement in the period in which they are earned.
By matching revenues and expenses in the same period in which they incur?
By matching revenues and expenses in the same period in which they incur, net income or loss will be properly reported on the income statement.
What requires that expenses will be matched with revenues to determine net income?
Matching
Matching revenues and expenses refers to?
Matching revenues and expenses is called "Matching concept" of Accounting.
What is on an income statement?
revenues and expenses
How are revenues and expenses reported on the income statement under the accrual basis of accounting?
Revenues are reported on the income statement in the period in which they are earned.
By matching revenues and expenses in the same period in which they incur?
By matching revenues and expenses in the same period in which they incur, net income or loss will be properly reported on the income statement.
The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is?
The matching principle
What requires that expenses will be matched with revenues to determine net income?
Matching
How are the revenues and expenses reported on the income statement under the cash basis of accounting?
They are reported in the period in which cash is received or paid
Prepaid expenses depreciation accrued expenses unearned revenues and accrued revenues are all examples of?
Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are all examples of
Matching revenues and expenses refers to?
Matching revenues and expenses is called "Matching concept" of Accounting.
Are revenues the same as net income?
Revenues are earnings from sales of products and net income is the difference between revenues and expenses.
What is on an income statement?
revenues and expenses
What effect do revenues and expenses have on retained earnings?
Revenues Increase and Expense Decreases.
How accrual basis of accounting is related to matching concept?
Accrual basis accounting system is based on the concept of matching principle which dictates that revenues of same fiscal year should be matched with expenses of same fiscal year.
What are the categories in an income statement?
+ Incomes or Revenues - Expenses
