The matching theory is the idea that after revenues are recorded, similar bills should be recorded at the same time. For example, stock could well be billed to the cost of goods simultaneously that a business operator received earnings from the sale of this sort of inventory objects.
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The likely concern principle states that a company need to keep on being in operation for your foreseeable long run. A company operator would then be in their legal rights to defer the recognition of some charges including depreciation click resources until finally a later date. If this did not arise then all costs would need to be recognized at the same time and never deferred.
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