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channel stuffing

   Also found in: Wikipedia 0.06 sec.
channel stuffing
Artificially inflating current sales and earnings by shipping more goods than would normally be ordered. For example, an appliance manufacturer may inflate revenues and earnings in the current accounting period by shipping to retail stores more refrigerators, stoves, and dishwashers than the stores are likely to sell. The practice of channel stuffing borrows revenues and earnings from the future because overstocked customers will reduce orders in future periods.


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Chief Financial Officer Charles Lesser told Greenberg there was no channel stuffing "whatsoever," adding the sales were normal orders that Jameric didn't have any problem paying for.
Tussle doesn't shake faith of True Religion's investors by Brown, Rachel / Los Angeles Business Journal
Revenue Recognition: The Games People Play, covering such issues as channel stuffing and fictitious entries.
Financial statement fraud, integrity of financial information ... by CPA Letter
Channel stuffing may work for awhile, however problems arise when high sales from past quarters are made at the expense of poor sales in another quarter.
In Desperate Times: More Savvy and Cooperation at the SEC by McCrary, Deanna / California CPA
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