The matching principle is a fundamental accounting concept in the measurement of net income. The matching principle directs those preparing financial statements to ensure that revenues and all their associated expenses are recorded in the same accounting period. This is done to ensure that a net income is not distorted by time differences in billing and cash exchanges. The matching principle is the basis on which the accrual accounting method of bookkeeping is built.
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Peter John Baskerville
onto Basic Accounting Concepts October 21, 2011 7:42 AM
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