Matching principle-revenue recognition principle
What would be the effect of removing either the Matching Principle or the Revenue Recognition Principle from the process? Use a concrete example of how doing so might affect accounting in a given period.
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Conduct a DuPont decomposition of Lucent's ROE for the 1998, 1999 and 2000 first (December) quarters. What factors contributed to differences in the Lucent's performance between those quarters?
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What would be the effect of removing either the Matching Principle or Revenue Recognition Principle from the process? Employ a concrete example of how doing so might affect accounting in a given period.
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