What is the matching principle? The matching principle directs a company to report an expense on its income statement in the same period as the related revenues. To illustrate the matching principle, let's assume that all of a company's sales are made through sales representatives (reps) who earn a 1. The commissions for each calendar month's sales are paid to the reps on the 1. For example, if the company has $6. December, the company will pay commissions of $6,0. January 1. 5. The matching principle requires that $6,0. December income statement along with the related December sales of $6. This is likely to be carried out through an adjusting entry on December 3. Commission Expense and credits Commissions Payable for $6,0. The matching principle is associated with the accrual method of accounting and adjusting entries. Without the matching principle, the company might report the $6,0. Other than being the anointed presidential candidate of the administration in power, the political pedigree of former Interior Secretary Manuel Araneta Roxas II, or Mar for short, gives him an edge over his rivals.January (when it is paid) instead of December (when the expense and the liability are incurred). A retailer's or a manufacturer's cost of goods sold is another example of an expense that is matched with sales through a cause and effect relationship. However, not all costs and expenses have a cause and effect relationship with sales or revenues. Hence, the matching principle may require a systematic allocation of a cost to the accounting periods in which the cost is used up. For example, if a company purchases an elaborate office system for $2. If the future benefit of a cost cannot be determined, it should be charged to expense immediately. For example, the entire cost of a television advertisement that is shown during the Olympics will be charged to advertising expense in the year it is shown. Tough-Talking Duterte on the Cusp of Victory in Philippine Election Davao Mayor Rodrigo Duterte’s nearest challenger, Manuel Roxas II, concedes defeat. As Roxas campaigns in Leyte, Martin Romualdez makes amends. The UNA senatorial candidate issues a press statement calling for an end to the 'blame game' over Super Typhoon Yolanda.
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