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Matching Principle Accounting

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This is called the matching principle. The common set of US. Recognition Principle Accrual Principles Goods And Services The cash basis of accounting does not use. . The matching principle stipulates that a company match expenses and revenues in the same reporting period. Accrual Basis of Accounting. Another crucial principle of the accrual basis of accounting is periodicity. It basically is one of the golden rules of accounting for every credit there must be a corresponding debit. It is based on the matching principle where revenues are recorded for the period when goods and services are delivered and expenses are recorded when goods and services are purchased thereby matching revenues earned against expenses incurred during the same accounting period. Thus you charge inventory to the cost of goods sold at the same time that you record revenue from the sale of those inventory items. Under this system of a...
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