The discussion activity for Module 1 is based on Case 1.1, "Reliability of Financial Statements," in Financial and Managerial Accounting: The Basis for Business Decisions, 15th ed., by Williams et.
In the early 1980s Chrysler Corporation was in severe financial difficulty and desperately needed large loans for the company to survive. What factors prevented Chrysler from simply providing potential lenders with misleading financial statements to make the company look like a risk-free investment?