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Questions and Answers
What is the matching principle in accounting?
What is the matching principle in accounting?
The matching principle is a rule in accounting that seeks to match the expenses of a business with the revenues that the company generates.
Why is following the matching principle important in construction project management?
Why is following the matching principle important in construction project management?
Following the matching principle in construction project management is essential to ensure expenses incurred throughout the project are accurately matched with revenue generated from completed work.
What happens if expenses are not closely tracked alongside the revenues they generate in government contracts for construction projects?
What happens if expenses are not closely tracked alongside the revenues they generate in government contracts for construction projects?
If costs are not closely tracked alongside the revenues they generate, the company could start losing money quickly before realizing it.
