Accounting terminologies

Dear Akhil,

               Accrual concept is similar to the accouting principal that we use while preparing P&L a/c,all income and expenses have to treated in the current year when incurred (mercantile basis).

eg - o/s expenses, prepaid expenses, Advance income & o/s income.

Matching conept means all the incomes have to be matched with the respective expenses also proper clarity is required on it capital or revenue nature.

Regards

CA Vidhi Dedhia, QLI