Introduction: Throughout this report I will explain the advantages, disadvantages and give examples of the Cost Principle, Matching Principle, as well as the Revenue Recognition principle, which are all Generally Accepted Accounting Principles used in today's financial world. Each of these individual principles is unique in their structure and purpose, and all have different applications in today's world of accounting. The Cost, Matching, and Revenue Recognition Principle's are all very different in the way they …
showed first 75 words of 1239 total

showed last 75 words of 1239 total
…as well as its current market value. The Matching Principle is very useful because it matches expenses with revenues in the fiscal period that the revenue's are generated in; this makes it far easier to cover off your expenses that you encountered before hand. And the Revenue Recognition Principle allows you to see in which period your revenue was earned in compared to which fiscal period your asset designed to generate revenue was created in.