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Matching Principle

2 Posts
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1 Types

August 31, 2024 4 min read Definitions

Expense Recognition: An Accounting Principle Explained

Accounting Finance Expense Recognition Accounting Principles Matching Principle Financial Reporting Accrual Accounting

The principle that expenses should be recognized in the period when they are incurred.

August 25, 2024 4 min read Definitions

Matching Principle: Accounting Concept of Costs with Revenues

Accounting Finance Matching Principle Costs Revenues Depreciation Accounting Rules

The Matching Principle is an accounting concept that pairs revenues with the costs incurred to generate those revenues. For example, wages and materials bought to construct a rental property are depreciated over the period the building generates income, not during the construction period.