The primary accounting issue in the Royal Ahold case is:
A)Fraudulent recording of revenues on sales to customers
B)Fraudulent use of company resources by top management for personal purposes
C)Fraudulent inflation of promotional allowances to increase operating income
D)Fraudulent inflation of inventory to reduce losses on the income statement

Question

Quizplus · Accepted Answer

The primary accounting issue in the Royal Ahold case was the fraudulent inflation of promotional allowances, which were improperly recorded to artificially boost operating income.

The Primary Accounting Issue in the Royal Ahold Case Is