Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Accounting concept
- This topic has 7 replies, 2 voices, and was last updated 8 years ago by
John Moffat.
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- April 25, 2016 at 1:47 am #312556
Sir I don’t understand the Matching Concept?
April 25, 2016 at 6:45 am #312580It is the same as the accruals concept.
That we match the expenses to the revenue.
So, for example, we charge the cost of electricity for the year (and not simply the cash paid).
We spread the cost of a non-current asset (by depreciating) over the years during which it is earning revenue – we don’t charge the whole cost of the asset just in one year.April 26, 2016 at 7:30 am #312691Thank u sir, moreover in times of rising prices,what effect does the use of historical cost concept have on a companys asset values and profit? I don’t understand this question?
April 26, 2016 at 6:46 pm #312773I deal with this question specifically within my lectures 🙂
April 27, 2016 at 1:35 am #312794Well sir this question, is from the mock exam
April 28, 2016 at 11:45 am #312926I know very well that it is in the mock exam which is why I deal with it specifically in my lectures!
You really must watch the lectures – I cannot simply type them all out here 🙂
April 29, 2016 at 2:51 am #312997Ok thanks
April 29, 2016 at 8:40 am #313017You are welcome 🙂
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