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2 years ago

The concept that earnings management might align with conservative versus aggressive reporting is known as the?

1 answer:

4 0

The concept that earnings management might align with conservative versus aggressive reporting is known as '<u>Earning Continuum</u>'

The practice of managing earnings is using accounting methods to create financial statements that unduly favorably portray a company's operations and financial standing. A company's management must make decisions in accordance with several accounting laws and principles.

When faced with uncertainty, accounting conservative principles call for accountants to undertake a high degree of verification and choose solutions that display the least aggressive figures.

In order to artificially increase its worth by overstating earnings, aggressive accounting may involve postponing or concealing losses. By declaring gross sales and keeping deferred costs on the balance sheet rather than the income statement, businesses can artificially inflate their revenue.

To learn more about earnings management

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2 years ago

Tracy and Brett are married. Their current assets $9,243 Their current liabilities $6,921 Their monthly nondiscretionary expense

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1.3355

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4 years ago

The fiscal 2016 financial statements of Nike Inc. shows net operating profit margin (NOPM) of 11.4%, net operating asset turnove

Solnce55 [7]

Answer:

-13.562%

Explanation:

Data provided in the question:

Net operating profit margin (NOPM) = 11.4%

Net operating asset turnover (NOAT) = 3.83

Return on equity = 30.1%

Adjusted return on assets = 17.1%

Now,

Return on equity = Nonoperating Return + Return in net operating assets

Nonoperating Return = Return on equity - Return in net operating assets

Also,

Return in net operating assets = NOAT × NOPM

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= 43.66%

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3 years ago

The contribution margin equals sales minus all ______ expenses.

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The answer should be : Variable

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2 years ago