The matching concept requires that: MCQ with Answer and Explanation

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The matching concept requires that:

A. Profits should match cash

B. Expenses should be matched with revenues of the same period

C. Assets should equal liabilities

D. Debits equal credits

Answer: Option B

Solution (By JKSSB Mock Tests)

Matching principle states that expenses incurred to earn revenues should be recognized in the same accounting period.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

Financial Management aims at 'Wealth Maximization', which means maximizing:

A. Net profit after tax

B. Sales volume

C. Book value of assets

D. Market value per share

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Correct Answer: Option D

Explanation:
Wealth maximization implies increasing the net present value of the firm, reflected in the increased market price of its equity shares.

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Question #2

The 'TDS on benefit or perquisite' under Section 194R is at the rate of:

A. 1%

B. 10%

C. 5%

D. 2%

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Correct Answer: Option B

Explanation:
TDS at 10% on value of benefit/perquisite exceeding ₹20,000 in a year.

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Question #3

The 'Double Entry System' was first codified by:

A. Kautilya

B. Henry Ford

C. Adam Smith

D. Luca Pacioli

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Correct Answer: Option D

Explanation:
Luca Pacioli, an Italian mathematician, described the double-entry system in 1494.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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