Why might you want to inflate your reported earnings to make your financial position look stronger? What are the potential consequences of doing this?
Suppose you decided (like Michael Dell) to start a computer company. You know from experience that many students, who are now required to own and operate a personal computer, are having difficulty setting up their computers, accessing various materials from the local college network and from the Internet, and installing new programs when they become available. Your immediate plan is to provide a service under which representatives of your company will help students set up their computers, show them how to access various databases, and offer an e-mail “help desk” for various problems that will undoubtedly arise.