Short notes about “matching Principle” with suitable example

According to matching concept, all expenses incurred during the accounting period should be matched with the revenue earned in this period. So, we must determine all revenue earned during the particular accounting period and expenses incurred to raeb these revenues. In other words, expenses incurred in an accounting year should match with the revenue recognized in that year. in this concept excess of income over expenditure indicates the profit earned during the period. Onm the other hand, excess of expenditure over income indicate loss suffered during the period. For this, necessary adjustments are required for due expenses, prepaid expenses, advance income and accrued income.
For example:
Income = Expenditure + profit
Expenditure = Income + loss