Match­ing prin­ci­ple is about account­ing costs incurred against the rev­enues rec­og­nized to deter­mine the peri­odic income. This prin­ci­ple accounts for a company’s efforts against the accom­plish­ment within a par­tic­u­lar period of time. Since the finan­cial state­ments are peri­odic; the match­ing prin­ci­ple pro­motes com­pa­ra­bil­ity which helps users eval­u­ate the per­for­mance of the com­pany. Accord­ing to this …

Enron’s busi­ness model did not have a firm strat­egy and in remark­able turn of events, they por­trayed it to be inno­v­a­tive. While not all inno­v­a­tive plans lead to pro­duc­tiv­ity or prof­itabil­ity. First, dur­ing the hey­day of the com­pany, they had a firm busi­ness model when they were sup­pli­ers and nat­ural gas pro­duc­ers. But with competition …

CPA firms face unprece­dented sit­u­a­tions while audit­ing dif­fer­ent clients. All employ­ees in the audit team are com­pe­tent enough to obey their respon­si­bil­ity, but there are sit­u­a­tions which war­rant in-depth research and con­sid­er­able amount of expe­ri­ence. To solve knotty and com­plex audit­ing issues, CPA firms have a group of expert accoun­tants. They are impor­tant to the …

The rev­enue recog­ni­tion prin­ci­ple is about deter­min­ing the sales or rev­enues gen­er­ated by the enter­prise within a par­tic­u­lar period of time. It assumes that the com­pany real­izes the rev­enues when the ser­vice is ren­dered to the cus­tomer with­out empha­sis on when the cash is received. This method comes under accrual account­ing as opposed to cash …