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torisob [31]
3 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]3 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.
You might be interested in
How does compromising differ from accommodating in the Thomas-Kilmann Conflict Mode Instrument (TKI)?
GrogVix [38]

Answer:

Accommodating is giving in to the customer at the expense of the organization, while compromising entails finding a solution that asks everyone to give up something so that everyone is satisfied at some level.

Explanation:

3 0
3 years ago
Which one is not how decisions are made?
Scilla [17]

Answer:

Guessing

Explanation:

If you guess something it will not always be correct always have a 2nd opinion if you guess.

3 0
4 years ago
Workathome Inc. offers to help people establish and manage their own online businesses, a service for which it charges a fee. Ou
LiRa [457]

The correct answer is; potentially unethical segmenting.

Further Explanation:

Unethical segmenting is when a company tries to take advantage of a person or business who may not understand the rules, contracts, or even the language. They can be deceiving people who make very little money by offering them huge dividends if they chose that company to manage their online business. In the end, this can make the online business owner lose money and possibly lose their business while still owing the company that charged them to much and didn't give enough for the business to succeed.

Some common demographic segmentation that can lead to unethical segmenting are;

  • income
  • age
  • gender
  • ethnic background

Learn more about market segments at brainly.com/question/14024869

#LearnwithBrainly

5 0
4 years ago
Shannon purchases reams of copy paper for $1.75 and sells them for $4.25. Her business is all on the internet, so she works from
Vlada [557]

Answer:

The contribution margin per unit is 0.98$

Explanation:

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

<em>4.25 revenue</em>

1.75 copo paper

1.18 shipping cost

.34 sales commision

<em>3.27 total variable cost</em>

Contribution 4.25 - 3.27 = 0.98

The contribution margin per unit is 0.98$ This is what is left after paying the variable cost.

6 0
3 years ago
The dividend for Should I, Inc., is currently $1.40 per share. It is expected to grow at 16 percent next year and then decline l
nexus9112 [7]

Answer:

The most you would pay per share is $18.90 price per share today.

Explanation:

Note: See the attached file for the calculation of present values for year 1 to 3 dividends.

From the attached excel file, we have:

Previous year dividend in year 1 = Dividend just paid = $1.40

Total of PV of dividends from year 1 to year 3 = $4.50720663265306

Year 3 dividend = $1.55542091836735

Therefore, we have:

Year 4 dividend = Year 3 dividend * (100% + Dividend growth rate in year 4) = $1.55542091836735 * (100% + 4%) = $1.61763775510204

Price at year 3 = Year 4 dividend / (Rate of return - Perpetual dividend growth rate) = $1.61763775510204 / (12% - 4%) = $20.2204719387755

PV of price at year 3 = Price at year 3 / (100% + Required return)^Number of years = $20.2204719387755 / (100% + 12%)^3 = $14.3925325274857

Price per share today = Total of PV of dividends from year 1 to year 3 + PV of price at year 3 = $4.50720663265306 + $14.3925325274857 = $18.90

Therefore, the most you would pay per share is $18.90 price per share today.

Download xlsx
5 0
3 years ago
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