matching principle



Accounting: A fundamental concept of accrual basis accounting that offsets revenue against expenses on the basis of their cause-and-effect relationship. It states that, in measuring net income for an accounting period, the costs incurred in that period should be matched against the revenue generated in the same period.

Use matching principle in a sentence

  • There was a matching principle at work here and I figured that out based on my extensive training in school.

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  • The matching principle was useful was our inventory methods were complimentary with regards to inflows and outflows of goods and services.

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  • Some accountants prefer to use the matching principle because they think it is an easier and more efficient way of doing things.

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