Case 1-131.The term of the matched with revenues explains that, each expense occurred must becompared with one of the revenue which earned by the company. This term also calledmatching principle, according to this principle every expenses occurred must berecognized in the same term or period with the revenue. This principle tries to explainexpense and revenue relationship. By this method, every expense’s source can easilyidentified and generated with one of the revenue item. The expenses subtracted fromrecognized revenue and it gives the net income of the company.2.The matching principle’s four different approaches are;-Recognizing an expense according to the cause and effect relationship between therevenues and expenses.-Recognizing an expense with connecting the expense to the revenue in a specific timeof period. -Recognizing an expense with systematic and rational allocation in a specific time ofperiod.