In the Cleveland Custom Cabinets Case, the Owner of the Company

question 68

Multiple Choice

In the Cleveland Custom Cabinets case, the owner of the company thought it was all right to manipulate the financial statement numbers primarily because:

• A) He wanted to improve earnings to increase the share price of company stock
• B) The treatment recommended by the owner for estimating overhead conformed to GAAP
• C) He was the sole owner of the company and controlled the board of directors
• D) He got approval from the auditors

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Definitions:

Statistical Analysis

The process of collecting, exploring, and presenting large quantities of data to discover underlying patterns and trends.

Measure Behavior

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Acquiescence Response

A tendency for people to agree with statements or questions regardless of their content, often observed in survey responses.

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