Matching principle
In April, Grinnel Paving Limited acquired a large quantity of crushed stone on account with payment due in 90 days. The stone was used in May when Grinnel Paving Limited completed a large parking lot for a local shopping center. In early July, Grinnel Paving Limited paid the supplier from which the crushed stone had been obtained. In which month should Grinnel Paving Limited recognize the cost of the crushed stone as an expense? What accounting principle provides the justification for the answer?

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The Answer of Matching principle
In April, Grinnel Paving Limited acquired a large quantity of crushed stone on account with payment due in 90 days. The stone was used in May when Grinnel Paving Limited completed a large parking lot for a local shopping center. In early July, Grinnel Paving Limited paid the supplier from which the crushed stone had been obtained. In which month should Grinnel Paving Limited recognize the cost of the crushed stone as an expense? What accounting principle provides the justification for the answer?

Matching Principle in April, Grinnel Paving Limited Acquired a Large Quantity of Quantity