The matching concept, or matching principle, is a fundamental element of accrual-basis accounting. In accrual accounting, a company records revenue in its books as soon as it has done everything ...

The matching concept is often used to test whether a particular accounting method clearly reflects income. However, the IRS’s requirement that one taxpayer’s revenue match another’s expense may not be ...

In deciding how to keep the books for your business, you have two options: cash-basis accounting or accrual-basis accounting. The difference between them boils down to timing -- specifically, when you ...