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The matching principle is the idea that at the time revenues are recorded, similar fees need to be recorded at the same time. By way of example, inventory would be charged to the cost of goods at the same time that a company operator been given revenue in the sale of these kinds of inventory merchandise.
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The expense theory is the concept a company need to only report its belongings, liabilities, and equity investments at their primary order prices.
The development resulted within a break up of accounting programs for interior accounting or management accounting and exterior also referred to as fiscal accounting.
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