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 Lehman Brothers: Sold toxic asset (i

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1.  Lehman Brothers: Sold toxic asset (i.e., financial investments) to other banks with a buyback agreement, removing the toxic assets from its books.
   
   Identify how the B/S and earnings quality were impaired:
2. 12. Saytam: Created fictitious revenue recognition journal entries.
   
   Identify how the B/S and earnings quality were impaired:
3. 13. A company may try to paint a favorable picture of itself by accelerating the timing of revenues or estimating the collectible amounts too aggressively. In these cases the quality of accounting information declines because it does not represent the company's true economic condition and may not be sustainable. List two conditions which might suggest that a company is recognizing revenues too early?
4. 14. Briefly define and give an example for accrual manipulation and real activities manipulation. What is the main difference b/w the two methods of manipulation?