The principle in business accounting that states that revenues generated during an accounting period should be matched to expenses from that period, in order to capture the cause-and-effect relationship between them. Adherence to this principle produces accounting records that capture meaningful connections between income sources and expenditures.
Related information about matching principle:
- Matching principle - Wikipedia, the free encyclopedia
The matching principle is a culmination of accrual accounting and the revenue recognition principle. They both determine the accounting period, in which ...
- matching principle definition | AccountingCoach.com
The principle that requires a company to match expenses with related revenues in order to report a company's profitability.
- What is matching principle? definition and meaning
Definition of matching principle: Accounting: A fundamental concept of accrual basis accounting that offsets revenue against expenses on the basis of their ...
- Matching Principle - AccountingTools
The matching principle is one of the cornerstones of the accrual basis of accounting. Under the matching principle, when you record revenue, you should also ...
- What Is the Difference Between Revenue Recognition & Matching ...
If you're a business owner, revenue recognition and the matching principle are subjects to heed because they go a long way toward computing how much your ...
- Matching principle - Wiki | The Motley Fool
In accounting, the matching principle states that revenue is to be matched to the expenses used to generate that revenue.
- What Is the Matching Principle?
The matching principle is an accounting concept that matches all revenues with the expenses generated to earn those revenues...
- Matching Principle | Definition and Examples
In order to reach accurate net income figure the expenses incurred in earnings revenues recognized in a time period should be recognized in that time period ...