The Matching Cost to Revenue Principle has been covered many times this semester. Explain the purpose of theprinciple and how the principle causes changes to annual profits or losses. Also, give two business examples of the application of the Matching Cost to Revenue Principle. For example, if your business owned an Investment Propertyand received rental income in advance. Then any income received beyond the 30th June, would be considered income for the next financial year. Ie Prepaid Income.