Accounting: Tools for Business Decision Making, Ch. 4: Accrual Accounting Concepts
Read pages 150-185. Consider: What is the theory behind the matching principle? In what method of accounting, accrual or cash, does the matching principle apply?
Complete in 300 word count and will be allowed to log into my acct to browse the book
Username: MIZHALL
Password: QUEENb05!
click on Account Class
Blackboard will open go to course assignment activities
Week 2 CHAPTER 4
Solution Preview
Matching Principle in Accounting
Matching principle is an accounting principle which states that each of the profit accrued should be paired in a similar accounting period as the incomes they are aided to earn — matching consisting of two theories that Income recognition principle and accrual accounting. The two are used in determining the period of accounting in which the expenses and profit are recognized.
In what method of accounting, accrual or cash, does the matching principle apply?
Matching principle employs both the accrual and the cash accounting.
(362 words)