R. J. Reynolds Tobacco Co

Introduction
This paper will review the "R. J. Reynolds Tobacco Company" case study found in the 2nd edition of " Accounting for Managers: Texts and Cases". The primary accounting issue in this case is revenue recognition and questions relating to trade loading will be discussed and evaluated. An important set of non-accounting issues will also be presented that relate to possible unethical behavior that occurred during the leveraged buyout (LBO). Based on the facts presented, the paper will conclude by developing a plan of action R. J. Reynolds Tobacco Company (RJRT) could potential…