Matching of Revenue and Expenses - Deepstash
Matching of Revenue and Expenses

Matching of Revenue and Expenses

Any business generates assets that are then sold off to create revenue. As per the matching principle, only the expenses which are related to the realized sales are treated as expenses

1

8 reads

Similar ideas to Matching of Revenue and Expenses

Cracking the code of the Income Statement

It consists of three main categories:

  • Sales or revenue during a given time period. It includes sales (revenue) and Earnings-per-share (EPS)
  • Costs and expenses: “Above the line” are the cost of goods sold (COGS), cost of services (COS). “Below t...

Universal Law

The Pareto principle has been seen working in various fields, and domains:

  • Sales and Marketing departments recognised that 20 percent of the customers brought 80 percent of the products, and 20 percent of their sales force made 80 per cent of the sales.
  • Businesses realized t...

Don’t Give Everything Away For Free

Nintendo restricted players who have bought the ‘Switch’ console which plays the hit game, to only be able to create one island. This has been a controversial restriction, but has enabled more sales of the console.

The lesson here is to provide something for free but add revenue-cr...

Read & Learn

20x Faster

without
deepstash

with
deepstash

with

deepstash

Personalized microlearning

100+ Learning Journeys

Access to 200,000+ ideas

Access to the mobile app

Unlimited idea saving

Unlimited history

Unlimited listening to ideas

Downloading & offline access

Supercharge your mind with one idea per day

Enter your email and spend 1 minute every day to learn something new.

Email

I agree to receive email updates