Accounting for IGCSE & O level - Advanced Principles (Section 5 - No. 23)
What does the 'matching principle' require?
Revenues and expenses are matched in the same period.
All assets and liabilities must match.
The value of assets must match the value of liabilities.
Expenses are matched to revenues.
Shpjegimi
The matching principle mandates that expenses be recognized in the same period as the revenues they helped generate.