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Explain the significance of the transaction to an analyst

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Reference no: EM131725650

Question: For the past three years DMR, Inc. did not write off numerous accounts of customers who were in default and unlikely to pay their bills. DMR management, who had earlier refused to approve any write-offs, told the accounting area to write off $500 million of accounts receivable. Wall Street analysts viewed this write-off as a one-time nonrecurring event. Explain the significance of this transaction to an analyst.

Reference no: EM131725650

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