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Outstanding expenses is included in Profit & Loss A/c at the year end according to which concept _________
  • a)
    Matching 
  • b)
    Full disclosure 
  • c)
    Accrual 
  • d)
    Going Concern 
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Outstanding expenses is included in Profit & Loss A/c at the year ...
(c) Accrual
Description: Under accrual concept, The effects of transactions and other events are recognized on mercantile basis i.e. when they occur (and not when cash is received or paid) and they are recorded in accounting records and reported in financial statements of the period to which they relate.
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Community Answer
Outstanding expenses is included in Profit & Loss A/c at the year ...
As per accrual concept the income which is related to current year should be recorded in current year whether it is received or not or the expense which is related to current year whether it is paid or not should be recorded in current year.That's why outstanding expenses included in profit and loss account at the end of financial year.
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Outstanding expenses is included in Profit & Loss A/c at the year end according to which concept _________a)Matchingb)Full disclosurec)Accruald)Going ConcernCorrect answer is option 'C'. Can you explain this answer?
Question Description
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