The July 2, 2004, issue of the Wall Street Journal includes an article by Gene Colter titled “Accrual Accounting Can Be Costly.”

211 BROADENING YOUR PERSPECTIVE (iit 212 CHAPTER 4 Accrual Accounting Concepts Instructions Read the article and answer the following.

(a) How does the article define accrual accounting?

(b) What does the article say happens to companies in the “highest accrual category,”

and why does it happen?

(c) What high-accrual group companies does the article mention that experienced shareholder lawsuits?

(d) What was General Motors spokesperson’s response to being included in the highaccrual group?

INTERPRETING FINANCIAL STATEMENTS