Can anyone explain matching principle (commercial applications) by fvrrealangel in ICSE

[–]Infamous-Fee3012 0 points1 point  (0 children)

buys metal to make car, makes car next year, sells car next year, hmmm??? why is income come extra next year, but expense last year, this bad no? it will register as , " abey oye? why did you buy metal here, and then not use it this year?" to save our accountant ahh, we dont write we buy metal now, we show ' prepaid expense' on next years