Matching concept

Matching concept

The accounting principle that requires the recognition of all costs that are associated with the generation of the revenue reported in the income statement.

Accrual Accounting

A system of accounting that recognizes revenue and matches it with the expenses that generated that revenue. Unlike other systems of accounting, which recognize revenue and expenses in the order in which they are received, the accrual accounting convention ignores the function of time and only considers what expenses generate what revenues, even if payments have not actually been made. Companies with inventories are required to use the accrual method for tax purposes.
References in periodicals archive ?
Earlier this year, the firm launched Star Banks Adventure, an online game and mobile app designed with a matching concept that reinforces learning, while engaging kids in an epic adventure to save the galaxy from financial chaos.
We use the entity matching concept to identify potential partners and help our clients expand into newer territories.
This innovative food matching concept was designed to allow leading figures in gastronomy, such as Andreas Antona at Simpsons, to present exclusive, unique menus to compliment the new Vintage of Dom Perignon 2003.
We older accountants were all taught the matching concept, the going concern concept, the principle of recognizing a transaction if it was at least probable and could be reasonably measured, etc.
As a result, many employers are considering using a matching concept, similar to the match used in their qualified retirement plan.
org), a New York-based business investment and development alliance, examined national matching services like ACE-Net and concluded, "The computer matching concept has proven to be a limited resource in terms of actually linking entrepreneurs with sources of capital.
These results can be explained if it is accepted that a matching concept was acquired during the original training and that this transferred to the test stimuli.
Under the matching concept, a deduction is suspended until the year of inclusion.
After carefully considering the IRS's argument that the matching concept was violated by the taxpayer's treatment, the court held that the IRS had abused its discretion in attempting to upset the taxpayer's method of accounting.
Well, your accountant takes the time to explain what he or she calls the matching concept.
Marketplace analytics--mkt10 also offers a market analyzer that allows a Top Performer or an employer to discover where they fit in the overall job market, complimenting its intelligent matching concept.
The matching concept is often used to test whether a particular accounting method clearly reflects income.