Ask Experts Questions for FREE Help !
    papspl's Avatar
    papspl Posts: 1, Reputation: 1
    New Member

    Nov 25, 2006, 02:15 PM
    Matching revenues and expenses
    The concept of matching revenues and expenses refers to what?
    RichardBondMan's Avatar
    RichardBondMan Posts: 832, Reputation: 66
    Senior Member

    Nov 25, 2006, 04:59 PM
    "REX" or revenue to expenses ratio.
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member

    Nov 25, 2006, 09:56 PM
    Quote Originally Posted by papspl
    The concept of matching revenues and expenses refers to what?
    The concept refers to the fact that you should match both the revenues and expenses in the period that they are earned/accrued.

    For exampleÖ

    In 2006, letís say you had $50,000 in sales and total expenses of $20,000. Therefore you made $30,000 profit.

    However, of those expenses, letís say you donít get one of the bills of $2,000 until Jan, 4, 2007. However, you already used the expense in 2006.

    Should that $2,000 be used to reduce your 2006 or 2007 income?

    It should be your 2006 income.
    shruthrao's Avatar
    shruthrao Posts: 1, Reputation: 1
    New Member

    Mar 3, 2012, 09:45 PM
    This is matching the cost incurred with the revenue earned ,which is important to find out the profit earned for that period.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member

    Mar 4, 2012, 08:37 AM
    It is known as the Matching Principle as per U.S. GAAP (Generally Accepted Accounting Principles).

Not your question? Ask your question View similar questions


Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.

Check out some similar questions!

Recording Prepaid expenses and Unearned Revenues [ 2 Answers ]

Hello- This is my first time taking Accounting and I'm having a few problems with some of my entries. If anyone could look at my first entry and help it would be greatly appreciated. I have to do the following: Prepare entries for the transactions under the method that records prepaid...

Join 2 excels by matching columns [ 4 Answers ]

I have 2 excels. Excel1: columns >> name; address Excel2: columns >> name; phone; dob Wish to join the two with matching "name". I cannot find anything on Excel help. I have downloaded some sharewares to handle this but either it failed to install or it does not function fully without...

Matching Coil - Trane XR-13 [ 2 Answers ]

Can someone give me a ballpark figure on the price of a matching coil for a new Trane XR-13 A/C?

Matching A/C units [ 7 Answers ]

Do I have to match the outside unite with the inside unite? I have a Rudd sys. Right now the heat pump outside is gone out. Do I have to replace with the same brand or can I go with an other brand? I'm in Dallas/Ft. Worth Tx. Do I need to go back with Heat pump or can I just go back with a a/c...

Analyzing revenues and receivables [ 2 Answers ]

Have been tasked with answering the following questions, but was advised that my calculations are off. The project is focused on Pfizer (major drug co). Question: If the 10-K is available, determine what additiona disclosures are available concerning the allowance for doubtful accounts. If...

View more questions Search