The main accounting issues in the Nortel Networks case were:
A) Premature revenue recognition and hidden cash reserves
B) Capitalization of operating expenses and hidden cash reserves
C) Premature revenue recognition and off-balance-sheet entities
D) Capitalization of operating expenses and off-balance-sheet entities

Question

Quizplus · Accepted Answer

The Nortel Networks case primarily involved issues of premature revenue recognition and hidden cash reserves. These practices were part of the accounting fraud that led to the company's financial statements not accurately reflecting its financial status, misleading investors and regulators.

The Main Accounting Issues in the Nortel Networks Case Were