Homework
The purpose of this homework is to apply the accounting revenue recognition concepts in a case study.
One of the most common methods to manipulate revenue is through a strategy called channel stuffing. Refer to the "Krispy Kreme, Sarbanes-Oxley, and Corporate Greed" and the "A Hole in Krispy Kreme's Story," located in the study materials, and summarize the company's unethical accounting practices and the impact on its stock price. Provide a 500 to 750 words memo to your supervisor summarizing and analyzing the Krispy Kreme transactions and their impact on financial reporting and stock value. You must address the following items in your memo:
a. Describe the five steps of the revenue recognition model. Specifically provide an explanation and example as to what signifies a performance obligation.
b. Provide an overview of Krispy Kreme's business model and summarize the unethical accounting and business practices at the company as detailed in "Krispy Kreme, Sarbanes-Oxley, and Corporate Greed." Specifically, report on the company's channel stuffing business procedures.
c. Summarize the facts presented in Krispy Kreme's stock value as detailed in "A Hole in Krispy Kreme's Stock."
d. Explain the relationship between the company's unethical accounting practices and the decrease in value of its stock.
Format your homework according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.