Explain Matching Principles?

Matching concept is an accounting principle which explains the need to match revenue with the expenses incurred to earn that revenue.

Matching concept is a basic accounting principle that directs a company to report an expense in the period its related incomes are earned. This concept is linked with the accrual and periodicity, where expense shall be recorded even if not paid, this leads to a creation of liability in the balance for the unpaid expenses. This leads to adjustments being provided for prepaid and outstanding expenses and unearned or accrued incomes.