Each of the Following Techniques Was Used by Gemstar TV

question 6

Multiple Choice

Each of the following techniques was used by Gemstar TV Guide International in its accounting fraud:

• A)Created cookie jar reserves of advertising revenue to smooth net income.
• B)Engaged in round trip transactions whereby Gemstar paid money to a third party to advertise its services and capitalized that cost while the third party used Gemstar's funds to buy advertising from Gemstar, and the company recorded 100% of that amount as revenue while capitalizing the cost of its advertising payments.
• C)Recorded revenue under expired, disputed, or non-existent agreements, and properly reported this as licensing and advertising revenue.
• D)Inflated advertising revenue by improperly recording and reporting revenue amounts from multiple-elements transactions.

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Definitions:

Training

Provides learning opportunities to acquire and improve job-related skills.

Tardiness

The act of being late or delaying arrival beyond the expected or scheduled time.

Vertical Loading

Enhancing a job by adding more meaningful tasks and responsibilities that increase the workers' autonomy and control over their work.