RLLH

Apple's 'Real' Earnings: Up Almost 125%

I admit to being a neophyte as far as accounting but: Under your theory, if I sold products at $10 apiece, but did not manufacture them until next year at a cost of $11 apiece, it sounds like you are saying I could claim a profit of $10 a unit this year. Is it not to prevent potential scams like this that GAAP was mandated?

Once companies start deviating from the standard, how is the investor supposed to know what to believe? Is the company an Apple, or is it an Enron?