The matching concept, or matching principle, is a fundamental element of accrual-basis accounting. In accrual accounting, a company records revenue in its books as soon as it has done everything ...

A business that uses the accrual basis of accounting recognizes revenue and expenses in the accounting period in which they are earned or incurred, regardless of when payment occurs. This differs from ...

Take an in-depth look at the treatment of revenues and expenses within the accrual method of accounting and learn why many ...

What Is the Difference Between the Revenue Recognition Principle and the Expense Matching Principle? Understand the uses of these two core principles. The revenue recognition principle is a ...

What is the Matching Rule? A fundamental principle that governs financial accounting. The matching rule requires that expenses and their related incomes are matched during a reporting period. Also ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

The maturity structure of debt matches the maturity of projects or assets held by the firm. Short-term assets are financed by short-term debt and long-term assets are financed by long-term debt. In ...