This preview shows page 1. Sign up to view the full content.
Unformatted text preview: cause net income for the period to be overstated. 6. Forming a special purpose entity (SPE) is a common way companies securitize receivables. 7. If a company factors its accounts receivables, this will have the effect of making its cash cycle appear shorter. 8. Under GAAP, the choice of inventory costing method (LIFO, FIFO, etc.) must be determined by the physical flow of the goods....
View Full Document
This note was uploaded on 02/16/2012 for the course FINA 470 taught by Professor Austin during the Fall '11 term at South Carolina.
- Fall '11