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torisob [31]
2 years ago
11

Define the phrase "earnings management." under what conditions, if any, is earnings management acceptable? do auditors' responsi

bilities include actively searching for instances of earnings management by clients? defend your answers.
Business
1 answer:
12345 [234]2 years ago
3 0
Earnings Management is the purposeful control of an organization's income through the abuse of bookkeeping strategies to pick up an advantage for the organization to the detriment of the individuals who depend on the monetary data. It is tangibly deceptive and distorts the money related soundness of the organization. 
Earnings Management isn't worthy under any situation where the goal is to bamboozle clients of the money related proclamations. Under the Securities Exchange Act of 1934, anybody, regardless of whether straightforwardly or by implication, who distorts data regardless of the possibility that insignificant, is liable to an assortment of solutions for amending the circumstance per government securities laws. In the hazy area of GAAP, organizations can utilize the decision of devaluation strategies or stock valuation techniques and any adjustments in those strategies as long as they are unveiled. Any strategy changes in bookkeeping techniques are adequate as long as the monetary explanations are rehashed to demonstrate the impact of the change. The motivation behind a review is to give a sentiment to clients of money related articulations that the monetary proclamations are exhibited decently.
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During the introductory stage of the product life cycle__________.a) The company yields very high profits.b) There is significan
Artyom0805 [142]

Answer:

Letter c is correct. <u><em>The company is trying to recoup its marketing expenditures, such as promotions, research and development.</em></u>

Explanation:

The introductory phase of the product cycle is characterized by the insertion of the final product in the market.

In this phase the company focuses its efforts on the implementation of a marketing strategy such as promotions and advertisements that help reach the target audience. As it is a new product in the market, it is not common to have many competitors, but in return the profitability is also low, being common at this stage even financial losses.

Therefore, it is ideal to focus on customer-driven marketing so that the company begins to make profits.

7 0
3 years ago
A company's income statement showed the following: net income, $122,000; depreciation expense, $34,000; and gain on sale of plan
Airida [17]

Answer:

cash generated from operating activities 133,400

Explanation:

net income                     122,000

non-monetary adjustment

depreciation expense     34,000

gain on sale                      (8,000)

adjusted income             148,000

↑↓

Changes in working capital

↓10,200 on AR                   10,200

↑22,000 on Inventory     (22,000)

↑7,000 prepaid expenses (7,000)

↑4,200 account payable    4,200

total change in WP         (14,600)

cash generated from operating activities 133,400

6 0
3 years ago
Why is it important to add images charts and graphs into reports? what is important to illustrate reports with visuals?
Maksim231197 [3]
Using visual aids in long reports, which shows a lot of numerical values seems a bit boring, which is why using graphs, charts or any other visual aids aids the audience, which will make it easier for them to review the content of the presentation at the same time, understanding it easily than reading long words and texts.
7 0
3 years ago
Read 2 more answers
What is stock exchange?​
Novosadov [1.4K]

A stock exchange is a facility where stock brokers and traders can buy and sell securities such as shares of stock and bonds and other financial instruments

7 0
3 years ago
Read 2 more answers
The Devon Motor Company produces automobiles. On April 1st the company had no beginning inventories and it purchased 8,000 batte
grin007 [14]

Answer and Explanation:

The computation is shown below:-

a) raw-materials is

= (8,000 - 7,600) × $80

= $32,000

b) work in process 7,500 batteries x $80 x 10%

= $60,000

c) Finished goods = 7,500 batteries × $80 × 90% × 30%

= $162,000

d) cost of goods sold 7,500 batteries x $80 × 90% × 70%

= $378,000

e) selling expense is

= 100 × $80

= $8,000

Total 8,000 batteries purchased × $10 per battery is

$80,000

2. Specification is shown below:

a) rawmaterials  stock               $32,000  Balance Sheet

b) work inprocess                     $60,000   BalanceSheet  

c) Finishedgoods stock            $162,000   BalanceSheet

d) cost of goodssold                 $378,000   IncomeStatement

e) sellingexpense                     $8,000   IncomeStatement

7 0
2 years ago
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