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Expense Matching
An accounting principle that states expenses should be recorded in the same period as the revenues they helped to generate, to accurately match income with expenses.
Cause and Effect
A relationship where one event (the cause) leads to the outcome of another event (the effect).
Systematic Allocation
The methodical distribution of costs or revenues across different accounts, periods, or projects to match expenses with related revenues.
Expense Recognition
The accounting principle dictating that expenses are recorded when incurred, not necessarily when paid.
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