XACC 280 Week 3 DQ 1

Question:
What would be the effect of removing either the Matching Principle or the Revenue Recognition Principle from the process? Use a concrete example of how doing so might affect accounting in a given period.

Response 1
Two of the generally accepted accounting principles include the matching principle and the recognition principle. The foundation of the “matching principle” states that when a company receives revenue or incurs expenses they have a certain period of time to recognize these items.
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