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Accounting Basics: Debit and Credit Entries

An operating expense is any cost related to primary business operations like the sale of goods and services. For example, you would include rent, utilities, wages, supplies, and other overheads. Non-operating expenses are any costs that are related to secondary...

Matching Principle Definition + Concept Examples

This resulted in non recognition of expenses incurred but not paid for during an accounting period (i.e. accrued expenses) and the charge to income statement of expenses paid in respect of future periods (i.e. prepaid expenses). Application of matching principle...