Asked by Micaila Reinschild on May 01, 2024
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The matching principle requires expenses be recorded in the same period that the related revenue is recorded.
Matching Principle
An accounting principle that requires expenses to be recorded and recognized in the same period as the revenues they helped to generate.
Expenses
Costs incurred in the normal course of business to generate revenues, including costs such as rent, salaries, and utility expenses.
Related Revenue
Income generated from sales or transactions that are directly related to the core operations or primary activities of a business.
- Master the guidelines for revenue recognition and the corresponding matching of costs.
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Learning Objectives
- Master the guidelines for revenue recognition and the corresponding matching of costs.
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