matching principle

matching principle definition - business

matching principle

  1. In accounting, the notion that expenses should be recorded in the same period in which the expenses were used to earn revenues.
  2. The idea that a business should match the maturity of its liabilities with the maturity of its assets. For example, long-term assets should not be financed with short-term liabilities.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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