Accountants make mistakes. The culprits? Naughty keyboards typing in numbers twice, trying to do complex arithmetic in their head, crediting when they should be debiting, and generally, putting the wrong number of beans in the wrong box on the wrong sheet.
Accounting error, for better or worse, is a sad thing, but it isn't fraud, which would be the intentional committing of an accounting error.
Related or Semi-related Video
Finance: What is Asymmetric Information?25 Views
Finance allah shmoop what is asymmetric information Well asymmetry happens
when two sides of something aren't equal think giant red
wood and we'd regular crab and fiddler crab recumbent bike
and a eunice cycle well in the financial world asymmetric
information exists when one side of a transaction think inside
trader scumbag who collects briefcases full of cash from somalia
in overlords versus a normal joe six pack investor trying
to fairly participate in the stock market So he has
a pension to retire on while bouncing great grandchildren on
his newly installed robotic knees Well discount needs don't go
there Your summer college job is cleaning the house of
the ceo of whatever dot com currently trading at eighteen
bucks a share as you empty her garbage one night
pushing away adult diapers in the process Yes she has
a lot of pressure on the job on this conference
calls and saying ooh a lot I push that away
You realize that microsoft is buying her company for thirty
dollars a share You then by a ton of stock
at eighteen bucks you had a symmetric information because you
dug through the trash and you found the memo from
whoever the ceo is of microsoft these days to her
and that was bad You didn't have to act on
that information like you could have just done a whole
lot of nothing and not repeated it to anyone and
left the stock at eighteen dollars until it was all
in the news at thirty and moved on and still
have your job cleaning her trash Having inside information isn't
illegal but doing something to benefit yourself tor You know
your loved ones is illegal So if you trade based
on inside asymmetric information well then you just committed a
felony It's called insider trading And while here's hoping you
look good and either orange or black or or both
Up Next
How do some accountants “cook the books”? Cooking the books refers to accountants making company’s financials look much better than they are....
What is planned obsolescence? Planned obsolescence is the idea that products will need to be replaced. Companies strategize and plan ahead for this...
What is an Accredited Investor? An accredited investor, according to the SEC, is an individual with income of $200,000 or more and $300,000 and abo...