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The matching principle supports matching expenses with the related revenues.
Matching Principle
An accounting concept that requires expenses to be recorded in the same period as the revenues that are generated as a result of those expenses.
Expenses
It refers to the outflow of cash or other valuable assets from a person or company to another entity as a result of purchasing goods or services.
Related Revenues
Income that is directly connected to the primary operations or activities of a business.
- Gain an understanding of the concepts governing revenue recognition and the matching of expenses.
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Learning Objectives
- Gain an understanding of the concepts governing revenue recognition and the matching of expenses.
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