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This question is about staff accountant skills.
What is the matching principle in accounting?
The matching principle in accounting is the principle for recording revenues and expenses. To apply it, a business must record its revenues alongside its expenses.
Ideally, these should follow within the same period to make clearing easier. The principle represents that businesses often incur expenses to have revenue.
The matching principle is important in accrual accounting. The matching principle states that accountants should try to match related revenues with related expenses during a specific period. This is done so they can link the cost of something with its revenue to weigh the benefits.
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