How can earnings management affect the quality of earnings

Assignment Help Financial Accounting

Reference no: EM13823917

Please address the following 3 discussion questions in your own words, not from copying from a different website.?

1- What is earnings management? How can earnings management affect the quality of earnings?

2- What is the major distinction (a) between revenues and gains and (b) between expenses and losses?

3- How should correction of errors be reported in the financial statements?

Reference no: EM13823917

Questions Cloud

Calculate amount of sales revenue needed to achieve target : A seller of guitars wants to make a monthly profit of $5,100 selling his guitars. His instruments sell for $700.00 each. His fixed costs are monthly rent and utilities/$1,210., $2,500./Wages and benefits to his employee, and other expenses of $481.00..

What is the net operating income : The company does not have any variable manufacturing overhead costs or variable selling and administrative costs. During its first year of operations, the company produced 48,000 units and sold 45,000 units. The company's only product sells for $258 ..

Determine the predetermined overhead rate : The manufacturing overhead budget of Paparella Corporation is based on budgeted direct labor-hours. The November direct labor budget indicates that 6,000 direct labor-hours will be required in that month. The variable overhead rate is $2.00 per direc..

What was the variable overhead efficiency : Shawl Corporation's variable overhead is applied on the basis of direct labor-hours. The standard cost card for product F02E specifies 5.5 direct labor-hours per unit of F02E. What was the variable overhead rate variance for the month? What was the v..

How can earnings management affect the quality of earnings : What is earnings management? How can earnings management affect the quality of earnings? What is the major distinction (a) between revenues and gains and (b) between expenses and losses? How should correction of errors be reported in the financial st..

Predetermined overhead rate-denominator level of activity : Kingdon Corporation's manufacturing overhead includes $7.10 per machine-hour for variable manufacturing overhead and $207,000 per period for fixed manufacturing overhead. What is the predetermined overhead rate for the denominator level of activity o..

Civil law systems-foreign corrupt practices act : Which of the following statements is true of civil law systems? A multimillion-dollar U.S. project to construct a suspension bridge is in progress. True Structures Inc. in Canada shares both profits and responsibilities for the project with Three Tow..

Using the units of production method : A company purchased a delivery van for $30,000 with a salvage value of $6,000 on January one, Year 1. It has an estimated useful life of 6 years or 60,000 miles. The van was driven 13,000 miles in the first year. Using the units of production method,..

What is the total variable cost per table : Determine the total Fixed MOH. What is the total variable cost per table? What is the total Variable MOH per table? Calculate the total variable costs at the expected level of output of 10,000. Calculate the cost per unit or table at 10,000 units of ..

User Account

All Pages