ACC 230 WEEK 7 DQ 2 - Week 7 Discussion Question 2 Due...

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Week 7 Discussion Question 2 · Due Date: Day 4 [Main forum] · Post your answer to Study Question 5.6 on p. 180 in Ch. 5. · Discuss the consequences of poor quality reporting. What has the U.S. government
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done to improve the quality of reporting after recent financial scandals, such as Enron? WorldCom, Inc.'s  behavior is comparable to Cisco's behavior from 2000-2004. In that instance, Cisco reported on its 2001 Form 10-K that it  had a 21.8% increase in sales and a 25.1% decrease in receivable. The textbook tells us that, "if receivables decline, the  allowance for doubtful accounts would decline as well." Doubtful accounts here means those accounts whose customers  were in default and unlikely to pay their bills. Just as Cisco did not decrease (and in fact increased) its allowance for doubtful  accounts, so WorldCom initially refused to decrease its allowance for doubtful accounts. By suddenly turning around in the 
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ACC 230 WEEK 7 DQ 2 - Week 7 Discussion Question 2 Due...

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