matching principle


The principle in business accounting that states that revenues generated during an accounting period should be matched to expenses from that period, in order to capture the cause-and-effect relationship between them. Adherence to this principle produces accounting records that capture meaningful connections between income sources and expenditures.

Use matching principle in a sentence

We did not meet the matching principle and that made me angry cause I had gone out of my way to make sure it matched.

​ Was this Helpful? YES  NO 11 people found this helpful.

The matching principle was adhered to by the accounting firm who advised the company on when to recognize their revenue.

​ Was this Helpful? YES  NO 11 people found this helpful.

We had been strict followers of the matching principle for some time, so when some in management spoke of a different approach, there was skepticism.

​ Was this Helpful? YES  NO 8 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
matching funds matching strategy