The Importance of Spreading Out Losses

Andy estimated his company would make a lot more money than it actually did. As a certified public accountant, he should have revised the numbers in his spreadsheet to reflect how much money they really took in. He spread out the loss over several months instead of taking all the loss in the moment and the period that he knew of it. You're not allowed to do that according to generally accepted accounting principles. Andy didn't think it was right, because he was a CPA. And he felt really uncomfortable in the environment that he was working in.