The term 'Matching Concept' requires that: MCQ with Answer and Explanation

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The term 'Matching Concept' requires that:

A. Expenses must be matched with the revenues they help to generate

B. Debits must match credits

C. Assets must match liabilities

D. Income must match expenditure

Answer: Option A

Solution (By JKSSB Mock Tests)

The matching concept dictates that expenses incurred in a period must be recognized in the same period as the revenues they helped to generate.

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

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Practice More Accountancy and Book Keeping Questions

Question #1

Which type of voucher is used to record a transaction that does not involve cash or bank at all?

A. Debit Voucher

B. Journal Voucher

C. Payment Voucher

D. Credit Voucher

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Correct Answer: Option B

Explanation:
A Journal Voucher (or Non-Cash/Transfer Voucher) is used for credit purchases, credit sales, depreciation, and adjusting entries.

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

Question #2

Wages paid for the erection of a new boiler should be debited to:

A. Boiler (Machinery) Account

B. Trading Account

C. Repairs Account

D. Wages Account

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Correct Answer: Option A

Explanation:
Capitalizing erection costs is required under standard accounting principles, so it is debited to the specific asset account.

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

Question #3

A Cash Book with Cash, Bank, and Discount columns is called a:

A. Three-column Cash Book

B. Petty Cash Book

C. Two-column Cash Book

D. Simple Cash Book

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Correct Answer: Option A

Explanation:
A three-column cash book tracks cash transactions, bank transactions, and discounts allowed/received simultaneously.

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

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