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The matching concept in accrual accounting helps ensure that firms state earnings accurately. What is the Matching Concept in Accounting? The matching concept is an accounting practice whereby firms recognize revenues and their related expenses in the same accounting period. Firms report "revenues," that is, along with the "expenses" that brought them. The purpose of the matching concept is to avoid misstating earnings for a period.
Reporting revenues for a period without stating all the expenses that brought them could result in overstated profits. Note that applying the matching concept requires accrual accounting, by which companies recognize revenues when they earn them and expenses in the period they incur them. Actual cash flows from these transactions may occur at other times, even in different periods. Explaining the Matching Concept in Context Sections below further define and illustrate the matching concept.
Note especially that the term appears in context with related terms and concepts, including the following: • • • s? • • • • . • . • Related Topics • The materiality concept in accounting. See . • Accrual accounting explained. See • Double entry accounting explained. See . • For examples showing the use of ROI and other financial metrics in business case analysis, to reflect only costs and benefits resulting directly from an action, see: • • • In the US, Canada, the UK, and in many other countries, accounting principles such as the matching concept appear in GAAP (Generally Accepted Accounting Principles).
They are also by the organizations behind GAAP. In the United State, this is the Financial Accounting Standards Board, FASB. Besides the matching concept, two other universally recognized accounting concepts include: • The This idea is the principle in financial reporting that companies disregard matters are and disclose all essential data. • The historical cost convention This convention is the practice by which record prices as the price prevailing at the time of the transaction.
Who enforces matching and other accounting principles? A first answer is that enforcement usually falls to the same parties that "enforce" GAAP: Independent third-party auditors. When an auditor reviews a firm's financial statements, the best possible outcome is an of Unqualified.
This opinion affirms the auditor's judgment that reports are accurate and conform to GAAP. And, this means the auditor finds no issues with matching, materiality, "historical costs," or any other GAAP-defined accounting principle.
And, this outcome means the auditor finds no problems with matching, materiality, historical costs, or any other GAAP-defined accounting principle. Accrual Accounting The matching concept represents the primary difference between and the alternative approach, . The matching idea, in fact, has meaning only under accrual accounting. The concept refers specifically to matching earned revenues with the incurred expenses that brought them.
Matched "revenues" and "expenses" work together in the Income statement equation to determine the firm's net profit for the period Net Profit = Revenues Earned – Expenses Incurred While the matching concept is concerned only with revenues and expenses, businesspeople also use quite a few other related terms that are easily confused with "revenues" and "expenses:" costs, cash inflows, and cash outflows, for instance.
It is essential, therefore, to understand precisely the meaning of earning revenues and incurring expenses. Accrual Accounting: Earning Revenues Under accrual accounting, firms claim revenues when they earnthem.
Earning "revenues" means meeting two conditions. • Firstly, revenues must be realizable. Revenues from sales of goods and services are said to be only when there is a good reason to believe payment is forthcoming.
• Secondly, the seller has in fact delivered the goods and services. Revenues earned during the period, therefore, may exist as, or as cash received. Accrual Accounting: Incurring Expenses. Under accrual accounting, consuming resources incurs expenses. Note especially that the accountant's definition of "expense" refers to . Expense:A decrease in owner’s equity due to using up assets • An expense for delivery vehicle fuel, for instance, uses up cash assets.
• The firm may purchase capital assets, such as a fleet of delivery vehicles, , over time decreases the book value of these assets. • For most other kinds of spending, however, firms incur expenses only as they consume resources.
• Firms incur expenses for employee labor, for instance, after employees perform the work. Only then do they, in fact, owe wages or salaries to employees.
• Firms incur floorspace rental expense, over time, only as they occupy the space. For instance, a firm may sign a one-year rental contract for floor space. The agreement, moreover, may call for monthly rent payments due on the first day of each month. On the first day of the first month, after making the monthly advance payment, the firm does not yet incur an expense.
At that point, the firm has instead an asset known as a Prepaid expense. For the accountant, rental "expense" itself builds day by day, as the firm occupies the space. At the end of the month, the Prepaid expense asset has reached zero value, and the monthly rental expense is fully "incurred." Exhibit 1, below summarizes the relationships between terms including cost, expenditure, and expense.
How does the accountant know which expenses brought which revenues? The answer is just that the all of the reporting period's "revenue" earnings match only with all "expenses" incurred in the same period. Consider a firm that sells merchandise from rented shop space. Suppose also the firm reports sales revenues for the quarter at $600,000. However, the firm's customers may not, in fact, pay all they owe during the quarter.
Some payment may arrive days or weeks the period ends. And, also suppose that the firm pays $30,000 for floorspace rent each month, for using the shop, and payment is due in advance on the first of each month.
One day after the quarter ends: • The firm reports earning $600,000 in revenues for the quarter just finished, even though some of this is still "payable." • The matching concept requires that the firm report floorspace rental expenses for the incurred for occupancy during the quarter. The firm will report $90,000 incurred for the quarter just over. It will state this amount even if it has already made the advance payment for the next month. Cash Basis Accounting: The Matching Concept Does Not Apply Under cash basis accounting, firms claim revenues when they, in fact, receive the cash payment for them.
Similarly, under cash basis accounting, they report expenses when, in fact, they pay them, in cash. As a result, the matching concept does not apply under "cash basis accounting." One form of the matching concept helps give meaning to financial metrics at the heart of and "investment analysis." These analyses ask, mainly, "What happens if we take this or that action?
And, they answer in business terms: Business costs, business benefits, and business risks. These analyses produce financial metrics for evaluating potential action, such as the following metrics: These metrics are useful for this purpose because they take an investment view of the cash flow stream that follows from an investment or action. "Investment view" means they compare cash inflows to cash outflows.
And each of these metrics makes the comparison in a unique way. For more on cash flow metrics, see . Metrics have Meaning When Returns Match Costs That Brought Them In all four cases, the comparison—the resulting financial measures—has meaning only when the outflows bring the inflows under analysis. These metrics, in other words, have a clear message only when analysts compare investment returns to the investment costs that deliver them.
Firms launch projects, initiatives, programs, and products—all with specific objectives in mind. The aim may be, for instance, to improve sales revenues, market share, employee productivity, product quality, or customer satisfaction, for example. The problem for the analyst, however, is that firms typically approach such objectives through multiple actions.
For analysts to claim validity for the ROI metric, they must be able to argue that the returns in view are matched appropriately with (and only with) the costs that brought them. In a complex business environment, prudent decision-makers will question that claim before trusting the ROI.
For examples showing the use of ROI and other financial metrics in business case analysis, to reflect only the costs and benefits directly resulting from an action, see the encyclopedia entries for: • • .
best dc matchmaking cost - Best
Parameter Description Value cost Specifies the route cost. Route costs can be changed to prevent routing loops. The value is an integer ranging from 0 to 4294967295. greater-equal greater-equal-value Specifies the minimum value of route cost. The value is an integer ranging from 0 to 4294967294. less-equal less-equal-value Specifies the maximum value of route cost. less-equal-value is demanded to be greater than greater-equal-value.
If greater-equal is specified, but less-equal is not, the maximum value 4294967295 is used as less-equal. If less-equal is specified, but greater-equal is not, the minimum value 0 is used as greater-equal.
The value is an integer ranging from 1 to 4294967295. Usage Scenario You can use the if-match cost command to configure a node to filter routes based on the route cost. After such a filtering rule is configured, you can apply the apply clauses to change the attributes of the routes that match the filtering rule. • Run the route-policy command to enter the Route-policy view. • A route-policy may consist of multiple nodes.
The relationship between the nodes is "OR". The system matches a route against the nodes in sequence. If the route matches a node, the route matches the route-policy, and the system no longer matches it against other nodes.
• Each node comprises a set of if-match and apply clauses. The if-match clauses define the filtering rules that are used to match certain route attributes. The relationship among if-match clauses of the same node that are based on different route attributes is AND. A route matches a node only when the route matches all the filtering rules specified in the if-match clauses of the node. The apply clauses specify actions.
The relationship among if-match clauses of the same node that are based on the same route attribute is OR. The system matches routes against the if-match clauses in order. If a route matches an if-match clause, the system no longer matches the route against the rest if-match clauses.
For example, the if-match community-filter 1 and if-match as-path-filter 1 configurations in node 10 are based on different route attributes. Therefore, the relationship among if-match clauses of this node is AND. The if-match community-filter 1 and if-match community-filter 2 configurations in node 20 are both based on the community attribute. Therefore, the relationship among if-match clauses of this node is OR. The apply clauses specify actions.
If a route matches a node, the apply clauses set some attributes for the route. Prerequisites The if-match cost command can be used only after the command is used. Precautions The routing policy matches routes based on the route cost. Routes that match the route cost will be checked by other if-match clauses of this node. Routes that do not match the route cost will be checked by the next node.
Matchmaking This is a new system that allows you to enjoy your favorite games faster and more conveniently. You can easily play the game simply by selecting the desired mode and simple options, without the difficult and unnecessary process.
• Since the introduction of matching system unifies all servers, the concept of channels with servers such as starter servers disappears. • Each mode has a level limit, which is intended to recommend it depending on the user's level. Some unpopular modes have limited use. • If you participate in 'next map vote' during play, next game will start with same number of people without additional matching.
• If you play through custom games, you'll not participate in any events. However, you can still rank up. Overview Matchmaking allows the player to create a team with other players regardless the and fight other teams.
Every players and every teams will receive a rating number where winning a match will increase it and vice versa. The opponent team will be chosen randomly. Matchmaking has its own server and the player can only invite players in these servers. Features Create Team Each player can make their own team by only naming their team (the team's name must not contain inappropriate word).
Team Tab There are some tabs that used in the matchmaking. • Home: The main page that will appear when the players enter the matchmaking server. • Play Game: This tab is used when the players want to start a match.
• Manage Team: This tab is used to see the number of online teammates, changing the position of the leader, kicking out members and leave the team. • Season Ranking: The players can see the rank and stats from other teams. • League Ranking: Special ranking that will only appears after the team joined the league. • Hall Of Fame: Shows only updated ranking after the season is over. Rating Info There are 2 types of rating, Individual and Team. The individual rating won't change even if the players changed teams.
Team Chat Special chat that can be used.
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