In the Cleveland Custom Cabinets case, the owner of the company thought it was all right to manipulate the financial statement numbers primarily because
A) He wanted to improve earnings to increase the share price of company stock
B) The treatment recommended by the owner for estimating overhead conformed to GAAP
C) He was the sole owner of the company and controlled the board of directors
D) All of these

Question

Quizplus · Accepted Answer

The owner believed it was acceptable to manipulate the financial statements because he was the sole owner and had control over the board, giving him the authority to make such decisions without external accountability.

In the Cleveland Custom Cabinets Case, the Owner of the Company