1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vesna_86 [32]
3 years ago
14

Income smoothing refers to: a. the ability of management to use accruals to reduce the volatility of reported earnings over time

. b. the ability of management to maintain sales to its current customers for several years. c. the ability of management to report an earnings amount in each period less than actual earnings. d. the ability of management to report an earnings amount in each period greater than actual earnings.
Business
1 answer:
svetoff [14.1K]3 years ago
6 0

Answer: The correct answer is "a. the ability of management to use accruals to reduce the volatility of reported earnings over time.".

Explanation: Income smoothing refers to <u>the ability of management to use accruals to reduce the volatility of reported earnings over time.</u>

The smoothing of earnings is a practice that consists in reducing fluctuations in recognized income and, therefore, fluctuations in earnings. That is, the smoothing of earnings implies saving income in bonanza times to recognize them accountingly when income is meager.

You might be interested in
Deep Water Mining added $411 to retained earnings last year on sales of $24,646. The administrative expenses were $4,370, deprec
ANTONII [103]

Answer:

It is $18,290.24

Explanation:

Profit after Tax (65%) = addition to retained earnings+dividend paid

                                   = $411 +  $285

                                    = $ 696

Profit before Tax = [100/65] * $ 696

                            = $1070.76

Tax (35%)             = 35% * $1070.76

                            = $374.77

Gross Profit = Profit before tax + Total expenses

                    = $1070.76 + [  $4,370+ $103+ $812]

                    = $6355.76

Cost of Sales= $24,646 -$6355.76

                     = $18,290.24 .

Note

-Dividend is paid is paid from profit after tax

6 0
3 years ago
In order to build large production units and expedite certain routine government actions related to this, Scorpius Inc. made leg
const2013 [10]

Answer:

b. speed money

Explanation:

Speed money -

It refers to the amount of money provided in order to increases the time period of any process or task , is referred to as speed money .

It is also known as grease payments .

It is different from the bribe , as bribe is given in order to approve the activity or task .

But speed money is used to hasten the time period .

Hence , from the given question ,

The correct answer is speed money .

3 0
2 years ago
How does demand-pull inflation differ from cost-push inflation?
kicyunya [14]
<span>Demand-pull inflation is asserted to arise when aggregate demand in an economy outpaces aggregate supply. It involves inflation rising as real gross domestic product rises and unemployment falls, as the economy moves along the Phillips curve. This is commonly described as "too much money chasing too few goods".</span>
4 0
3 years ago
Read 2 more answers
In the last few decades the car manufacturing sector has found it difficult to compete with foreign car imports. High labor cost
vladimir2022 [97]

Answer: c. It could allow real wages to downwardly adjust more easily.

Explanation:

When there is modest inflation, companies in the car manufacturing industry can simply decide not to increase nominal wages. This would lead to a fall in real wages as inflation would ensure that the nominal wages are less than they were worth before.

This decrease in real wages will allow the companies in the industry to reduce labor costs in real terms and become more competitive with the foreign manufacturers.

3 0
3 years ago
The summary of a state’s financial transactions with the rest of the world, including trade, __________, and the remittance of i
Oduvanchick [21]
The summary .................. including trade, FOREIGN AID and the remittance............. Balance of payment is the record of all economic transactions between the residents of a country and the rest of the world in a particular period of time. A balance of payment allows a country to monitor its import and export rates.
8 0
2 years ago
Other questions:
  • Find the present values of the following cash flow streams. The appropriate interest rate is 7%. (Hint: It is fairly easy to wor
    14·1 answer
  • Alpha Co. has cost of goods sold of $77 million, net income of $9.6 million, sales of $120 million, and total assets of $150 mil
    5·1 answer
  • Suppose you have $12000 in your checking account. You withdraw $500 cash from your account and hide it under your pillow for fut
    7·1 answer
  • Tim receives a call from a friend when he is on a conference video call with his boss. What should be his next step?
    6·1 answer
  • If you started a car wash service today but didn't have the funds to pay
    8·1 answer
  • A barter economy is different from a money economy in that a barter economy
    12·1 answer
  • A(n) __________ consists of one person at the top of the organization and many levels of managers who are responsible to that pe
    11·1 answer
  • Operational effectiveness refers to: Group of answer choices matching the benefits of a successful position while maintaining an
    12·1 answer
  • A firm or individual providing financial capital to small businesses in exchange for an ownership stake in the company is called
    13·1 answer
  • Explain how banks have transformed their commercial lending business from asset transformation to brokerage services
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!