Profit Is Calculated as the Difference Between Income and Expenses

question 44

Multiple Choice

Profit is calculated as the difference between income and expenses as defined by the IASB Conceptual Framework.As a result:

• A)The matching principle is of prime importance in calculating profit.
• B)Profit is influenced directly by the definitions and measurement rules for assets and liabilities.
• C)There is no need for separate recognition criteria for profit.
• D)Profit is influenced directly by the definitions and measurement rules for assets and liabilities and there is no need for separate recognition criteria for profit.