12/30/2023 0 Comments Matching principle conceptThis revenue was generated by the sale of goods costing 4. Sometimes store can’t collect the money and have to write off the receivable as a bad debt because it will never be collected. The matching principle states that the cost of goods sold must be matched to the revenue. Not all customers actually pay off their store credit cards. One expense that retailers that offer credit to customers is bad debt. This means that any costs associated with these extended terms should be recognized and recorded as the revenues are recorded. In a sense, these extended terms help generate extra sales. That’s why just about every department store offers its own store credit card. Example of Matching Principle: Match the expenses in a current period of time during which they incur rather than a time when payment is complete. When retail stores allow customers to take additional and extended lines of credit with their stores, the customers tend to purchase more merchandise. The matching principle states that you must record expenses associated with any revenue for the same time period, regardless of whether that money has been. The basic concept of the accrual accounting method is: The matching principle in accounting states that matching the reporting revenues and expenses in the same period links the revenue with its profit. So an expense should be recorded in the same period as the corresponding revenue. Prinsip matching / prinsip penandingan dalam akuntansi dapat dilakukan dengan mengidentifikasi pendapatan dalam suatu periode dengan beban yang berkaitan dengan pendapatan tersebut. The matching principle simply states that related revenues and expenses should be matched in the same period. To help protect the tax base, the IRS has broadened tax matching beyond the traditional matching of revenue and expenses to include payer/payee matches. Businesses must incur costs in order to generate revenues. The matching concept is often used to test whether a taxpayer’s particular accounting method clearly reflects income. In other words, the matching principle recognizes that revenues and expenses are related. Definition: The matching principle is an accounting principle that requires expenses to be reported in the same period as the revenues resulting from those expenses.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |