Expense Recognition and Matching

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Lyrics

[Verse 1]
When a company buys supplies in March
But won't use them until May arrives
The cash goes out, the books mustarch
To match expenses when revenue thrives
It's not about when money flows away
It's when the benefit helps you earn your pay

[Chorus]
Match it up, match it right
Expenses follow revenue's flight
When sales appear, costs draw near
That's the principle crystal clear
Match it up, don't delay
Record expenses when they create your way

[Verse 2]
Sarah's bakery buys flour today
For wedding cakes she'll bake next week
The flour cost can't run away
To this month's books where it would sneak
She'll record that cost when ovens glow
And wedding revenue starts to show

[Chorus]
Match it up, match it right
Expenses follow revenue's flight
When sales appear, costs draw near
That's the principle crystal clear
Match it up, don't delay
Record expenses when they create your way

[Bridge]
Salaries for the sales team earning
Commissions when the deals close tight
Office rent while machines are churning
Product costs that make profits bright
Every dollar finds its proper place
When matching puts them face to face

[Verse 3]
Depreciation spreads the cost
Of equipment over useful years
So monthly profits aren't tossed
By large purchases that bring tears
The matching rule keeps books in line
Revenue and expenses intertwine

[Chorus]
Match it up, match it right
Expenses follow revenue's flight
When sales appear, costs draw near
That's the principle crystal clear
Match it up, don't delay
Record expenses when they create your way

[Outro]
When revenue sings its song
Expenses dance along
Together they belong
Matching makes accounting strong

← Revenue Recognition Basics | Depreciation Methods Explained →