Wednesday August 15 2012
Back in the day to boost Saturn sales, GM would book a sale when they shipped a car to a deaaler. Huh?
Now, BMW offered a substantial discount on the immediate purcase of cars to be used as demonstrators. The cars are still in the dealer showrooms but listed as demonstrators. Was that a sale?
Or as Gene Wilder qiupped in The Producers way back in 1968, I cooked the books!
We study end of period cut offs, what should be in sales and purchases according to proper accounting doctrine. There are lots of ways to twist the numbers. How did JPM manage to hit their earnings target even after losing $2 B in the Whale Trade, a number that has since grown to over $5 B?
clever accounting, eh?
Professor Elam 
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