Matching Principle
- Social Sciences -
Economics & Business Dictionary
Definition
An economics and business concept defining a measure, method, or organizational practice used for analysis and decision-making. It specifies how information is generated or used to guide allocation of resources and evaluation of outcomes. It does not ensure correctness without clear assumptions, reliable inputs, and appropriate review of results.
Matching Principle
- Social Sciences -
Finance & Accounting Dictionary
Definition
A finance and accounting concept defining a method, measure, or process used to record activity and support financial decisions. It specifies how value, risk, or performance is measured or controlled through standardized rules and routines. It does not ensure correctness without reliable inputs, appropriate assumptions, and effective review and controls.
Matching Principle
Social Sciences Dictionary
Definition
An accounting rule that requires expenses to be recognized in the same reporting period as the revenues they help generate, by allocating or associating costs to revenue‑producing activities so period profit reflects cause‑and‑effect relationships.