Matching Concept

2 Posts
1 Sections
1 Types

August 31, 2024 4 min read Definitions

Accruals Concept: Matching Income and Expenses

Accounting Finance Accruals Concept Matching Concept Financial Reporting International Accounting Standard 18 Accrual Accounting

The accruals concept is a fundamental accounting principle that requires revenue and costs to be recognized as they are earned or incurred, not as money is received or paid. This concept ensures that income and expenses are matched with one another in the period they relate to.

August 31, 2024 4 min read Definitions

Matching Concept: Aligning Revenues and Expenses

Accounting Finance Economics Matching Concept Accrual Accounting Financial Reporting Revenue Recognition Expenses

The Matching Concept in accounting is a principle that mandates revenues and the associated expenses to be recorded in the same accounting period. It ensures financial statements provide a clear, accurate representation of a company’s financial performance.