Sunday, April 28, 2019

Article Review responses Assignment Example | Topics and Well Written Essays - 250 words

Article Review responses - Assignment ExampleEnron reaction of the public, creditor and regulatory agencys increase awareness of companys attempt to used financial acrobatics to make the company start stable and profitable. In the case of Penguin, it removed depreciation from its Cost of Goods Sold which is a standard greet of recognizing wear and tear to make it have the appearance _or_ semblance to have a more than above industry fair Gross Profit Margin of 39.56 percent. It may be less in severity but it is no different from Enrons futures marketing where they recorded future sales (sales which are non realize) to make the company appear profitable even if those sales are not yet realized. This of way of life looks good on paper thereby increasing the valuation of its stock in the market duping its sendors to invest on its stocks. Penguin may have said it to be unintentional but again, this practice is far from desirable.If thus Penguin did not intend to commit a shady acc ounting practice to make the company appear to have a higher Gross Profit Margin, it should then revise its accounting method fit in to GAAP and follow absorption costing that would reflect the true cost of its product and

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