The matching concept differentiates between cash basis accounting and accrual accounting. With the help of matching concept revenues and expenses are brought together within the same period of time. Before the matching concept starts to bother you, you can check matching concept in accounting homework help to get a clear idea of the topic.

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What is amatching concept?

This is a practice in accounting whereby expenses and revenue are identified within a specific period of time. The revenues are reported along with the expenses incurred within that particular period of time.

What is the purpose of matching concept?

The matching concept will serve the following purposes:

  • It will ignore the wrong starting of earnings within a period.
  • It is able to provide a detailed report of the revenue without mentioning all the incurred expenses that actually brought them together
  • It may thereby result in understated and overstated profits made by the company.
  • In order to apply this concept, accrual accounting is needed.
  • It is able to identify the flow of cash in these transactions.

The concept of matching requires a lot of understanding. If you want to gather the skill of matching successfully, then you must go through our matching concept in accounting assignment help.

Where did this matching concept get recognized?

The accrual accounting and matching concepts have been recognized in many countries like in the USA and in several other countries. Among the various accounting concepts, materiality concept has also been recognized by the FASB.

Role of matching concept in financial world:

  • It plays an important role in providing meaning to all types of financial metrics.
  • They are used in both for investment analysis and in businesses.
  • Comparison of cash flow both in and out can be done in different ways.

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