Examples of mismatch in the following topics:
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- Accrued expenses and deferred expenses are two examples of mismatches between when expenses are recognized under the matching principle and when those expenses are actually paid.
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- By following the matching principle, businesses reduce confusion from a mismatch in timing between when costs (expenses) are incurred and when revenue is recognized and realized.
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- It reduces noise from the timing mismatch between when costs are incurred and when revenue is realized.