Register now or log in to join your professional community.
a. Realization principle b. Materiality principle c. Matching principle d. Depreciation principle
Matching Principle governs the timing of revenue recognition.
Joshi Mathew
Certified Internal Auditor #1036906
c. Matching principle
c
Under this principle revenue is to be recorded when it is realized (or realizable), revenuesare recognized as soon as a product has been sold or a service has been performed, regardless of when the money is actually received.
Under matching principle of the accrual basis of accounting:
Revenues are reported on the income statement when they are earned- before the cash is received from the customers.
