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What is difference between matching concept, matching assumption and matching principle in accounting?
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Matching Concept:
The matching concept is a fundamental principle in accounting that states that expenses should be recognized and recorded in the same accounting period as the revenues they generate. This concept ensures that financial statements accurately reflect the results of an entity's operations for a specific period. By matching revenues and expenses, the concept allows for the determination of net income or loss.

Matching Assumption:
The matching assumption is an underlying principle of the matching concept. It assumes that the cost of resources consumed to generate revenues should be recognized in the same period as the revenues themselves. This assumption helps ensure that financial statements provide a true and fair view of an entity's financial performance.

Matching Principle:
The matching principle is a specific application of the matching concept. It guides accountants in determining when and how to recognize expenses in relation to revenues. According to this principle, expenses should be recognized in the same accounting period as the revenues they helped generate. This enables a more accurate measurement of an entity's profitability.

Key Differences:

1. Concept vs. Assumption:
- The matching concept is a broader principle that governs the recognition of expenses and revenues in accounting.
- The matching assumption is an underlying assumption that supports the matching concept by assuming that costs should be recognized in the same period as the associated revenues.

2. Scope:
- The matching concept applies to the overall recognition of expenses and revenues in accounting.
- The matching assumption is specifically concerned with the recognition of costs in relation to revenues.

3. Application:
- The matching concept guides the preparation of financial statements by ensuring that expenses are matched with the revenues they generate.
- The matching assumption supports the matching concept by assuming that costs incurred to generate revenues should be recognized in the same period as the revenues themselves.

4. Purpose:
- The purpose of the matching concept is to provide a more accurate representation of an entity's financial performance by aligning expenses with the revenues they help generate.
- The purpose of the matching assumption is to ensure that the recognition of costs and revenues in financial statements adheres to the matching concept.

Conclusion:
In conclusion, the matching concept is a fundamental principle in accounting that guides the recognition of expenses and revenues. The matching assumption supports this concept by assuming that costs should be recognized in the same period as the associated revenues. Together, these principles help ensure that financial statements accurately reflect an entity's financial performance and provide users with reliable information for decision-making.
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Read the following hypothetical Case Study and answer the given questions:The financial statements, comprising the Trading A/c, Profit & Loss Account, Balance Sheet and Cash Flow Statement, that are prepared from the accounting information are published for the use by different entities, persons, etc. It is therefore essential that the published information is based on defined principles, concrete concepts and conventions. Accounting principles are the basic guidelines that provide standards for accounting practices and procedures to be followed, so that uniformity in accounting transactions is maintained. Accounting concepts are the assumptions on the basis of which financial statements are prepared. Accounting conventions emerge out of the accounting practices that have been followed by various organizations, over a period of time. The generally accepted accounting principles are generally accepted accounting standards. The concepts on the basis of which the financial statements are prepared and are agreed upon by the accountants, acting as a foundation for accounting are called accounting concepts. They are uniform set of rules for uniformity and understandability of accounting information. They are derived from experience. They are not static. It needs to satisfy relevance, objectivity and feasibility. The going concern concept assumes that the enterprise has neither any intention nor any necessity to close the business and will last for a long time. It enables the firms to enter into long term contracts. It enables for the charge or depreciation on assets which have fixed life. Due to this concept prepaid expenses are treated as assets. It helps in the classification of assets and liabilities. According to Consistency concept, the accounting principles and methods should be consistent. It should not vary every year. It enables to compare the financial stability of the business. There needs to be consistency in valuation of stock, depreciation and provisions, to enable better decision making by the management. It doesn’t mean that the accounting methods should not change, but the nature and effect and the reason for change should be stated._____________ concept assumes that the enterprise has no intention of closing the business.

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What is difference between matching concept, matching assumption and matching principle in accounting?
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