INTERACTIVE ACCOUNTING SIMULATOR

Dual-Entry Forensic Ledger Sandbox

Select a classic fraudulent journal entry or construct custom transactions to examine how deceptive debits and credits propagate through financial statements.

KEY FACTS

Interactive T-account double-entry bookkeeping simulator modeling the mechanics of financial statement manipulation.
Visualizes how improper journal entries distort the three core statements: Balance Sheet, Income Statement, and Cash Flow Statement.
Pre-configured with classic fraud entries: WorldCom capitalized line costs, fictitious sales receivables, and cookie-jar reserve releases.

Load Forensic Transaction Preset: Populate standard journal entries used in historic enforcement cases.

General Journal Entry (T-Account) BALANCED (Dr = Cr)

DEBIT ACCOUNT (+ Asset / + Expense / - Liability):

Debit Amount (Millions USD):

CREDIT ACCOUNT (- Expense / + Revenue / + Liability):

Credit Amount (Millions USD):

Forensic Mechanism Rationale:

WorldCom capitalized routine line costs (network access and telco fees) directly into PP&E. Under GAAP, routine access charges must be expensed as incurred. Capitalization removed $1B from operating expenses, falsely swelling EBITDA and Operating Cash Flow (CFO).

1. Balance Sheet Position

Assets = Liabilities + Equity

ASSETS (Reported vs. Adjusted)

Cash & Equivalents: $2,000M

Accounts Receivable: $1,500M

Property, Plant & Equip: $11,000M (+$1,000M)

Total Assets: $14,500M

LIABILITIES & EQUITY

Long-Term Debt: $5,000M

Contingency Reserves: $500M

Retained Earnings: $9,000M (+$1,000M)

Total Liab. & Equity: $14,500M

2. Income Statement

Sales Revenue: $10,000M

Operating Expenses: $7,000M (-$1,000M)

Reported Net Income: $3,000M (+$1,000M)

3. Statement of Cash Flows

Operating CFO: $3,000M (+$1,000M)

Investing Cash Flow (CapEx): -$2,000M (-$1,000M)

Net Cash Change: $1,000M ($0 delta)