Matching principle

Matching principle,

Definition of Matching principle:

  1. 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.

How to use Matching principle in a sentence?

  1. Some accountants prefer to use the matching principle because they think it is an easier and more efficient way of doing things.
  2. There was a matching principle at work here and I figured that out based on my extensive training in school.
  3. The matching principle was useful was our inventory methods were complimentary with regards to inflows and outflows of goods and services.

Meaning of Matching principle & Matching principle Definition

Matching Principle,

How To Define Matching Principle?

  • Matching Principle means: Basic Concepts of Land Accounting In certain billing cycles, you should try to combine the reported revenue with the expenses required to generate that revenue in the period or period when you will be profiting from those expenses. A typical example is depreciation costs. When you buy a building that lasts for many years, you do not pay the price of the building at once. On the other hand, you reduce the wear and tear of the building compared to the estimated working life. Therefore, you have balanced the construction cost or costs over the years that you will spend on the benefits it offers.

Literal Meanings of Matching Principle

Matching:

Meanings of Matching:
  1. Collections in patterns, colors or complementary designs.

  2. Same value or equal value.

Sentences of Matching
  1. Blue jacket and matching skirt

  2. The University will provide substantial financial support for the implementation of this project

Principle:

Meanings of Principle:
  1. Basic truths or phrases that serve as the basis of a belief system or practice, or chain of reasoning.

  2. General scientific or legal suggestions that have many specific uses for a wide range of purposes.

  3. The source or basic basis of something.

Sentences of Principle
  1. Fundamentals of Christianity

  2. Physics has a great advantage here, because the ability to draw interesting conclusions from general principles was shown earlier in physics than in other sciences.

Synonyms of Principle

truth, proposition, concept, idea, theory, postulate