MATCHING : IS TO MAKE MEETING BETWEEN WHAT YOU PAY AND WHAT YOU GAIN IT IS VERY SIMLE BUY GOODS10$ SALARY5$ THIS PAY AND GAIN20 $ FROM SELL THE GOOD HERE I HAVE THE GOOD IGNOR IT BECAUSE IT HAVE ITS VALU IF YOU WANT TO RETURN THEN GO THE5$SALARY IT BRING20 $ DROP10 PRICE GOOD , SO AS ACCOUNTANT THER IS5 $ SALARY BRING10 TO THE COMPANY
NOW PRUDENCE IS TO CONSIDER THE WORST WILL HAPPEN , WHAT DOES IT MEAN? IF YOU HAVE A CASE IN LAW COURT AND50% TO WIN1000000% KNOW WHAT YOU DO?
PUT1000000 LOSE AND DISCLOSUER FOT IT
"Matching Concept" requires that expenses incurred by an organization must be charged to the income statement in the accounting period in which the revenue, to which those expenses relate, is earned.
"Prudence Concept" requires that accountants should exercise a degree of caution in the adoption of policies and significant estimates such that the assets and income of the entity are not overstated whereas liability and expenses are not under stated.