Accounting: The Games Companies Play

The pressure on CEOs to continually increase earnings per share in their companies' stock appears to be pushing some of them to stretch accounting rules so that investors can't tell what's really going on. A few companies, such as Sunbeam, Cendant, and Waste Management, have already wound up as accounting disasters. It's time for CEOs to exercise more restraint and for regulators to insist that investors get a clear picture of earnings.

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