Please search the news that AOL agreed to pay a $3.5 million fine to SEC for...

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Accounting

Please search the news that AOL agreed to pay a $3.5 millionfine to SEC for improper accounting practices in 1995 and 1996.
What is "Direct Response/Mail Advertising"?
How did AOL report the Direct Response Advertising costs in1995 and 1996?
Was the recording and the subsequent change of "Direct ResponseAdvertising" correct? If not, what accounting principles does itviolate? Why?
What were the effects on net income and total assets? (i.e.,How much net income were reported for year 1995? If the DirectResponse Advertising costs were reported correctly for year 1995,how much net income would have been reported for year 1995?)

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AOL was one of the early pioneers of the Internet in the mid1990s and the most recognized brand on the web in the United States It originally provided a dialup service to millions of Americans as well as providing a web portal email instant messaging and later a web browser following its purchase of Netscape AOL has a global portfolio of media brands and advertising solutions across mobile desktop and TV Solutions include brand integration and sponsorships through its inhouse branded content arm Partner Studio by AOL as well as data and programmatic offerings through ad technology stack ONE by AOL a What is Direct ResponseMail Advertising Promotional method in which a prospective customer is urged to respond immediately and directly to the advertiser through the use of a device provided in the advertisement These devices called direct response mechanisms include a 1 coupon to cut and mail 2 business reply card 3 tollfree telephone number or on the internet 4 hotspot to click Most retail sale advertisements are direct response ads in one way or the other successful elements of direct response marketing are Trackable Measurable Targeted Makes a specific offer Clearly outlines the benefits Has a clear calltoaction Personalized In connection with See Answer

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