Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 3 - No. 8)
Which of the following does a society need to do to comply with the matching principle?
Include an accrual for subscriptions outstanding.
Include prepaid expenses.
Include depreciation.
Report all money received.
Explanation
To comply with the matching principle, a society will include accruals, prepayments and depreciation in its accounts.
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