Reading Notes October 19th

Reading Notes October 19th - Carter Whittington Jordan...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Carter Whittington Jordan Radke Soci 415 19 October 2011 Reading Notes 10/19 The Obringer article, in summary, explains the idea of “cooking the books” through a series of examples. Basically, when a company cooks the books they make their financial situation look better than it actually is to appease stockholders, draw in new investors, and give executives bigger bonuses. The article goes into the reasons why a company would want to do this and different ways in which it is done such as SPE’s, accelerating expenses, and “mark to market accounting.” I’ll explain one of these strategies to make this idea more clear. Accelerating expenses, in general, means that a company spends money now that was planned to be spent further in the future. In the article, the example is when a company purchases equipment when earnings are high that wasn’t planned to be purchased for, say, a year later. Moreover, accelerating expenses allows a company to spend extra money to accomplish short term goals
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 2

Reading Notes October 19th - Carter Whittington Jordan...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online