Matching Concept Accounting Concept

Accounting Concept - Matching Concept
Matching of the revenue earned during an accounting period with the cost associated with the respective period to ascertain the result of the business concern is carried out. In other words, in Matching Concept, Revenue and Costs are being compared of a particular period to identify the net profit/loss for that particular period. 

Few Points to Remember
  • First, Revenue should be recognized
  • Then, cost incurred for generating that revenue should be recognized

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