Which of the following is NOT one of the techniques used by Gemstar TV Guide International in its accounting fraud?
A) Created cookie jar reserves of advertising revenue to smooth net income
B) Engaged in round trip transactions
C) Used channel stuffing to accelerate the recording of revenue into earlier periods
D) Inflated advertising revenue from nonmonetary and barter transactions

Question

Quizplus · Accepted Answer

Channel stuffing involves a company inflating its sales figures by forcing more products through a distribution channel than the market can absorb. This technique is more commonly associated with inventory and sales management rather than the specific accounting fraud techniques used by Gemstar TV Guide International, which involved manipulating advertising revenue and financial transactions.

Which of the Following Is NOT One of the Techniques