The October 5, 1998. edition of Business Week includes the article, Earnings Hocus-Pocus.* You can access the

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The October 5, 1998. edition of Business Week includes the article, "Earnings Hocus-Pocus."* You can access the article on the Libby/Libby/Short website at www.mhhe.com/libby4e.

Required:
Read pages 1 through 9 of the article (stopping at the paragraph beginning with "Meanwhile, the SEC ....'* Then answer the following questions: 1. What is meant by the concept that many companies take a "big bath"? 2. List several companies mentioned in the article that have taken a big bath by writing down fixed assets or intangibles. Indicate for each the nature of the earnings manipulation.

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Financial Accounting

ISBN: 9780070891739

1st Canadian Edition

Authors: Robert Libby

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