Introduction Q Scandals in stock market occur now and then Among them, financial frauds or income manipulation are common, Income manipulation typically starts from making up sales revenues as well as purchases, for example, Guang Xia (Yinchuan). Q In this lesson you are required to think about Why these income statement numbers are so important? How they are recorded in accounting system? Task Team of FUNDAMEnTAL ACCOUNTING Business School. Sun Yat sen University 33 Introduction t Scandals in stock market occur now and then. Among them, financial frauds or income manipulation are common. Income manipulation typically starts from making up sales revenues as well as purchases, for example, GuangXia (Yinchuan). t In this lesson you are required to think about, tWhy these income statement numbers are so important? tHow they are recorded in accounting system?