The Revenue Recognition and Matching Principles can be defined as follow:

Revenue Recognition Principle: The Revenue Recognition Principle is used to specify that the revenue should be recognized and recorded when realized and earned. It doesn’t matter the fact when the amount has been paid.

Matching Principle: The Matching Principle is used to specify that the companies have to report an expense on their income statement when the related revenues are earned. It is associated with the buildup basis of accounting.