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explain the matching concept and what is the deffered
revenue expendiature and how it related into matching
concept.
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Matching concept
The accounting principle that requires the recognition of
all costs that are associated with the generation of the
revenue reported in the income statement.
A deferred revenue expenditure is that where the benefit
the expenditure can be had for more than ONE accounting
period and less than FIVE accounting periods. There are no
hard and fast rules that the period is linted to 1 - 5. It
is just an assumption. It stands as an expired cost after
the business entity has had the complete benefits. It is
written off every year.
BOTH ARE CONTEMPORARY TO EACH OTHER....
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