A major reason for the Parmalat accounting scandal is that the firm ________.

Question

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The Parmalat accounting scandal involved the use of off-balance-sheet financing to hide debts, allowing the company to present a more favorable financial picture than was accurate. This deception ultimately led to the bankruptcy of the company. The other options (selling milk without a license, using U.S. GAAP instead of IFRS, and transferring assets to Swiss banks) were not major factors in the scandal.

A Major Reason for the Parmalat Accounting Scandal Is That