The matching principle, also known as the expense recognition principle, directs accountants to identify and measure all expenses incurred during the period and to match the expenses against the revenues during the period. The main goal is to measure net income. The matching principle is important to users of financial statements because in order to have an accurate balance sheet, assets have to match up with liabilities and owners equity. If they do not, it means that there is some incorrect in

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Definition of Matching Principle The matching principle is one of the basic underlying guidelines in accounting The matching principle directs a compa... View the full answer