Matching Of Revenues and Expenses homework Help

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What are revenues and expenses?


Any expenditure done by the firm in order to achieve some profit by its production is called as the expenses by the firm. Any income generated from that expense is considered to be the reverence generated by the firm. in this article for Matching Of Revenues and Expenses homework Help we discuss about the matching principle of revenue and expenses that a firm opts to determine the profit or loss occurred.

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What is matching principle?


The close relationship that stays between total revenue and total expenses of a firm in a particular accounting period is found out by matching principle. Related to the accrual method of accounting, as our Matching of Revenues and Expenses homework Help experts say, matching principle is helpful to ascertain profit and losses for the accounting period.

Profit = revenue – expenses

The above stated formula is used to identify the profit incurred in a company based on the data by expenses and revenues.

Who enforces the Matching principles?


In our Matching of Revenues and Expenses homework Help article, there are many countries like U.S, Canada, Australia etc. who follows the principles provided by GAAP. In U.S there is FASB who controls the enforcement of such principles. In our Matching of Revenues and Expenses homework Help article we list two universally known accounting concepts as follow

1. The materiality concept
2. The historical cost convention

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