Learn how India’s Income Tax Act, 1961, incorporates and sometimes deviates from key accounting concepts like matching, ...

The matching concept, or matching principle, is not an alternative to accrual accounting, but rather a fundamental element of it.

The article revisits the matching principle in accounting, exploring its historical development and implications for financial reporting and decision-making.

The idea behind recording adjusting entries lies with the matching concept. The matching concept records the cost of doing business during the same business month that the company earns the revenue.