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.

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  • 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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