The October 13, 2003, issue of Business Week includes an article by Stephanie Anderson titled “Is This Any Way To Run a Bank?”

Instructions Read the article and answer the following questions.

(a) Describe Sherry Colby’s account of her experiences with the mortgage company Washington Mutual.

(b) What other types of complaints has Washington Mutual received?

(c) What might be contributing to Washington Mutual's accounting troubles?

(d) What are the potential implications of the company’s apparent poor accounting practices for the success of its business?

INTERPRETING FINANCIAL STATEMENTS