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Expense revenue alignment

The Role of Matching Principle in Accrual Accounting

December 12, 2023

What is the matching principle in accrual accounting?

The matching principle in accrual accounting dictates that expenses should be recorded in the same period as the revenues they help generate. This principle ensures proper alignment between costs and related revenues, providing a clearer financial picture.

Tags : Matching Principle , Accrual Accounting , Expense-Revenue Alignment

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