improper recognition of revenue, accounting homework help

“The most common abuse is the improper recognition of revenue. One practice that some companies use is called channel stuffing. Offering deep discounts, companies encourage customers to buy early (stuff the channel) rather than later. This boosts earnings in the current period, but it often leads to a disaster in subsequent periods because customers have no need for additional goods” (Kimmel, 2016 p. 652).

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