Airplane manufacturer Boeing (BA 1.76%) can sell planes like the 787 Dreamliner for much less than it costs Boeing to build them, but still report huge profits on these sales. How is this possible? In this video, we take a look at Boeing's use of program accounting, a relatively rare accounting practice which allows the company to estimate future profits and book them in a current quarter, and ask what this means for investors.
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The Truth Behind Boeing's Bookkeeping
NYSE: BA
Boeing

Boeing's use of an unusual accounting practice allows management to record non-existent profits
Motley Fool contributor Daniel Ferry has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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