Assigning revenues to the accounting period in which goods were sold or services rendered and expenses incurred is known as

Assigning revenues to the accounting period in which goods were sold or services rendered and expenses incurred is known as

Answer Details

The assigning of revenues to the accounting period in which goods were sold or services were rendered and expenses were incurred is known as the matching concept. This concept states that in order to properly determine the net income for a given accounting period, all related revenues and expenses must be matched and recorded together. This ensures that the financial statements accurately reflect the true financial position of the company during that period.