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.

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

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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.

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matching funds matching strategy