Matching Principle

Introduction to Accounting

MS: Prinsip Pemadanan · EN: Matching Principle · ZH: 配比原则

Meaning

The matching principle states that expenses must be matched with the revenue earned in the same accounting period to calculate profit or loss accurately. All expenses that help earn a period's revenue must be deducted from that period's revenue. This principle is closely linked to the accrual assumption.

Example

Manis Bakery earns sales revenue of RM10,000 in June. June's wages and materials of RM6,000 are matched against that revenue so a June profit of RM4,000 can be shown.

Source: DSKP KSSM Prinsip Perakaunan Tingkatan 4

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