Management with opportunities for influencing

Assignment Help Financial Accounting
Reference no: EM132203693

"Earning quality earnings report is a routine in the due diligence process for private acquisitions. Net profit sometimes is not automatically a 100% accurate sign of financial performance for an entity. This report assesses how a company accumulates its revenues - such as cash or non-cash activities, recurring or nonrecurring activities."

Discuss the areas related to earnings statements that provide management with opportunities for influencing the outcome of reported earnings in ways that may not best represent economic reality or the future operating potential of a firm.

(5What items should be assessed when analyzing the quality of the sales number on an earnings statement?

How can the quality of earnings be impacted by discretionary expenses? Discuss with the support of relevant examples.

Reference no: EM132203693

Questions Cloud

What would the journal entry look like : What would the journal entry look like? not sure how to word the entry? Petty cash debit for $250?
Legal guidelines involving employee discrimination : Research how businesses comply with the obligations imposed upon them by legal guidelines involving employee discrimination.
Realized gain-loss during 2017 : 1. Realized Gain/Loss during 2017. 2. Unrealized Gain/Loss on Trading Securities for 2017
Used in the management of business and personal finances : Explain how each of the three financial statements are used in the management of business and personal finances.
Management with opportunities for influencing : Discuss the areas related to earnings statements that provide management with opportunities for influencing the outcome of reported earnings
Data-driven people insights could be helpful to agoda : What other data-driven people insights could be helpful to Agoda? What data would be needed, and how would it be collected, analyzed, and presented?
Identify which shareholders equity accounts : Identify which shareholders' equity accounts will be affected by each transaction and indicate whether each account will increase, decrease, or remain unchanged
Fiesta restaurant group values : Fiesta Restaurant Group Values. In many cultures, food is a way to express love, to welcome friends, and to create family and community bonds.
Prioritize its benefits given limited budget : Discuss how an organization should prioritize its benefits given a limited budget.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Fabulous fabricators needs to decide how to allocate space

Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts

  Display characteristics of both variable cost and fixed cost

Understand how fixed and variable costs behave and how to use them to predict costs, analyze a mixed cost using the high-low method and prepare an income statement using the contribution format.

  What rules impact a business accounting information system

What rules impact a business' Accounting Information System? What types of compliance is required - What if you were to view a Cricket World Cup game

  Under applied balance to cost of goods sold

Bretthauer Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of July. Prior to the closing of the over applied or under applied balance to Cost of Goods Sold, the total of the debits to the Manufa..

  Compute the gain recognized by smeder company relating

All net income effects of the intra-entity transfer are attributed to the seller for consolidation purposes. Compute the gain recognized by Smeder Company relating to the equipment for 2010.

  Prepare the service revenue budget for 2014

Average hourly billing rates are auditing $82, tax $93, and consulting $101 and prepare the service revenue (sales) budget for 2014 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and to..

  Using a horizontal financial statements model

Warner Company received $48,000 cash in advance for services to be performed over the one-year period from September 1, 2015 through August 31, 2016. Using a horizontal financial statements model, which of the following statements does not correctly ..

  All liability accounts normally have a credit balance

Managerial accounting information is designed primarily to assist investors and creditors in deciding how to allocate scarce resources. Investors are individuals and other enterprises that have provided equity to the reporting enterprise. All liabili..

  What are cumulative total passive suspended losses

Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $58,500. At the beginning of year 1, Molly has tax basis and an at-risk amount of $21,500. In year 1, Beau Geste incurs a loss of $187,000 ..

  Variable overhead spending variance for the month

What was the variable overhead spending variance for the month - what was the variable overhead efficiency variance for the month?

  Prepare firms pro forma income statement and balance sheet

Based on the historical statements and the additional information provided, Prepare the firm's pro forma income statement and balance sheet for 2014.

  Calculate the employer payroll taxes

According to a summary of the payroll of Bailik Co., $880,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $40,000 was subject to state and federal unemployment taxes. Calculate the employer's payroll taxes, using the ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd