Indian Institute of Technology, DelhiMacmillan India
 
Topic Overview
 
 
 Finance for Non-finance Executives

 Module 1 -> Unit 1 -> Financial Statements and Accounting Principles
   
 

Quiz on Profit and Loss Account

 
 


Multiple Choice Question

Preparation of a P&L account is based on the _________ .

 
Matching Principle
Duality Principle
 
 
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Correct Answer: Matching Principle

P
&L Account is concerned with matching the revenues of a specified period with the expenses of that period. Greater the accuracy of this matching procedure, more correct is the income determination.

Preparation of a P & L account is based on the Matching Principle.

 

 
   
 
    Profit and Loss                   Accounting Principles
   
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