Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - One reason accounting earnings might not be a realistic measure of economic income is the incentive and ability of business managers to manipulate reported profits for their own benefit. This may be particularly true when their company has an incentive compensation plan that is linked to reported net income. The manipulation of earnings, known as earnings management, commonly involves income smoothing. Income smoothing has been defined as the dampening of fluctuations about some level of earnings that is considered normal for the company. Research has indicated that income smoothing occurs because business managers prefer a stable rather than a volatile earnings trend.
Required -
Why do business managers prefer stable earnings trends?
Discuss several methods business managers might use to smooth earnings.
Thanos SA purchased land from Merry SA with book value of $800,000 for $1,000,000 in 2014. Prepare journals and consolidation workpapers for Thanos SA
What value is the purchased wool carried on the balance sheet? As well as the wool from its own sheep, at December 31,2021, Boy Macho Farming Co
Its income tax rate is 30% for the coming year, and estimated contribution margin is 25% find the total sales required to break even point
Explain the weighted average cost of capital (WACC) and its significance and include hypothetical examples for better clarity
On 1 July 2011, Pearl Ltd acquired all the shares of Beryl Ltd. On this date, the equity of Beryl Ltd consisted of:
Your client Chicken Supremacy Ltd is a manufacturer of fancy dress costumes. Discuss the impact of the results of tests of controls on purchases and payables
Identify the weaknesses in internal control over mail receipts, Provide recommendations for improving the internal control process over mail receipts
On the date of issuance the bond payable account had a balance of 50,000, What is the issue price of the bond
The company has an after tax cost of debt of 4.5 percent, and the tax rate is 21 percent. What is the weighted average cost of capital
Calculate the amount of the current portion of the lease liability as it is presented in Company A's December 31, Year 1, financial statements
If management decides to buy part I50 from the outside supplier rather than to continue making the part, what would be the annual impact on the company's overall net operating income?
Suppose you invest $1,000 in a savings account earning 6% yearly compounded interest with no inflation. What is the future value of this account in 12 years
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd