The accounting convention which states that the performance of a business should be determined by matching all expenses against revenues is?

  • A accruals
  • B materiality
  • C objectivity
  • D periodicity

The correct answer is A. accruals

Accrual concept is the most fundamental principle of accounting which requires recording revenues when they are earned and not when they are received in cash, and recording expenses when they are incurred and not when they are paid.

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