0
The Matching Principle is a rule that requres that expenses be recorded and reported in the same period as the revenue that those expenses help earn. It is a fundamental concept of accrual accounting as it is the association between the economic benefits (revenue) and economic cost (expenses) that is used to calculate profit (which is a measure of performance).
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
The process of recording revenue in the period it is earned is in line with which principle?
Matching Principle.
What is the difference between accrual accounting and matching principle?
Matching principle is the base of accrual accounting system which tells that each revenue earned should be matched with cost spent to earn that revenue so accrual account and matching principle is not different but same thing.
Importance of matching principle?
accounting matching principals ( costs and revenue ) is very important to show the correct year result.
Weaknesses of the direct write-off method is?
Violates the matching principle
What is mathing principle?
Matching principles advocates the matching of all expenses in specific fiscal year with matching reveneus for the same fiscal year.
The process of recording revenue in the period it is earned is in line with which principle?
Matching Principle.
What is the difference between accrual accounting and matching principle?
Matching principle is the base of accrual accounting system which tells that each revenue earned should be matched with cost spent to earn that revenue so accrual account and matching principle is not different but same thing.
What is the different between accounting principle and accounting principle?
Matching principle is the base of accrual accounting system which tells that each revenue earned should be matched with cost spent to earn that revenue so accrual account and matching principle is not different but same thing.
Importance of matching principle?
accounting matching principals ( costs and revenue ) is very important to show the correct year result.
The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is?
The matching principle
Weaknesses of the direct write-off method is?
Violates the matching principle
What is mathing principle?
Matching principles advocates the matching of all expenses in specific fiscal year with matching reveneus for the same fiscal year.
B What is Matching Principle. Why should a business concern follow this principle?
Matching principle teaches about matching the revenues of one fiscal year with expenses of the same fiscal year. Business concerns are encouraged to use this system because it is more accurate reporting tool as well as information provided in this way is more reasonable for analysis and comparison purpose.
What does the matching principle require?
The matching principle requires that cost of each fiscal year should be matched with revenue of that fiscal year and no previous or future period cost and revenues can be match in current fiscal year.
Intangible assets are capitalized and amortized over periods benefited?
Matching principle
What is the application of the matching principleto depreciation of plant and equipment can best be described as?
What is The application of the matching principle to depreciation of plant and equipment can best be described as?
The matching principle matches?
The matching principle in accounting is meant to ensure that all the expenses of a business should be recorded in the very period in which they are accrued. This prevents confusion where payments are done in a period much later than the accruals.
