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
HACTEHA [7]
3 years ago
9

In his analysis of the Dell fraud for Forbes, Edward Hess comments: "Too often, the market's maniacal focus on creating ever-inc

reasing quarterly earnings drives bad corporate behavior, as it apparently did at Dell. That behavior produces non-authentic earnings that obscure what is really happening in business. Short-termism can result in a range of corporate and financial games that may enrich management at the expense of market integrity and efficient investor capital allocation." Comment on Hess's statement from two(2) perspectives: earnings management and financial analysts earnings projections. Explain the difference between financial statement fraud and disclosure fraud. How did Dell use each one to produce materially misstated financial results
Business
1 answer:
Vaselesa [24]3 years ago
3 0

Answer:

As earnings naturally represent the managements ability and success, earnings is the item that is most prone to be misrepresented.

we know that projections are forecasts that are never 100% correct and these projections are extremely sensitive to macro environmental factors.

Financial statement fraud refers to intentional, fraudulent misrepresentations and miscalculations in the financial statement accounts, balances and cash flows. such fraudulent alterations are usually done at the accounts level and in those accounts and transactions.

Disclosure fraud refers to fraudulent activities and misrepresentations that are done by not including balances, hiding real figures and not disclosing essential and material items that are necessary to be disclosed.

Explanation:

You might be interested in
There are two aspects of efficiency that the equilibrium of market for loanable funds exhibits. Select the TWO statements that c
Mashutka [201]

Answer:

a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.  

b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.  

Explanation:

Loanable funds refer to the aggregate amount of money that all sectors, entities and individuals within an economy have decided to keep as an investment, instead of spending on personal consumption, by saving and giving them out as loans to borrowers.  

The market for loanable funds is in equilibrium when the supply of loanable funds by the saver is equal to demand for loanable funds by the borrowers at a given interest rate.

When the market for loanable funds is in equilibrium, efficiency is maximized because projects that have higher rates of return are given priority to be funded first before the projects with lower rates of return are funded. The reason is that savers that have lowest costs of lending provides funds for the projects that have highest return rates in equilibrium. However, potential saver who do not lend money will prefer a higher interest rates.

Therefore, the correct options related to the two aspects of efficiency that the equilibrium of market for loanable funds exhibits are as follows:

a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.  

b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.  

5 0
3 years ago
Because services are inseparable, they cannot be tried before they are purchased. To counteract this, a service firm might:
Marina CMI [18]

Answer:

A, Offer a guarantee for the customer's complete satisfaction.

Explanation:

SInce services are inseperable beacuse there cannot be trials unlike in some goods, the only way to keep a customer's mind at rest over the service he or she is getting to give a guarantee as to the quality of the service such that the customer is satisfied and can purchase the service.

For example, giving a customer a time frame for the durability of a service and also a consideration for re-service before the set or supposed time is a way of giving customer guarantee about a service he or she is purchasing

.

Cheers.

3 0
2 years ago
Within a PPF framework, explain each of the following:_______.
ra1l [238]

<u>Explanation:</u>

a. <em>Remember</em>, the PPF (Production Possibility Frontier) framework allows for the selection of a preferred choice as regards budget spending. Hence, in such a situation, it calls for a choice to be made.

b. According to the PPF framework, where there is an increase in the population, it is expected that such change would result in an increase in the labor force capacity; and ultimately leading to an upward shift in the PPF curve. Thereby, increasing the overall production of the economy.

c. Within the PPF framework, a technological change that makes resources less specialized will result also result in an upward shift in the PPF curve.

3 0
2 years ago
Timmons corporation purchases office supplies for $350 cash. how would this transaction be recorded?
andrezito [222]

Timmons Corporation purchases office supplies for $350 cash. Debit Supplies $350, credit Cash $350.

A legal entity is an organization (usually a group of people or a legal entity) authorized by the State to act as a single entity and legally recognized as such for a specific purpose. Early incorporated entities were established by charter. Most jurisdictions now allow the formation of new companies through registration.

A corporation is a business entity owned by shareholders who elect a board of directors to oversee the activities of the organization. A company is responsible for its actions and finances, but its shareholders are not.

Learn more about Corporation here:brainly.com/question/13551671
#SPJ4

5 0
1 year ago
What's the difference between life insurance and business insurance
Pavlova-9 [17]

Answer:

response

Explanation:

Health insurance protects you and your health. pays hospitals and whatnot. Business insurance protects your business and assets under it.

8 0
3 years ago
Other questions:
  • When a tax of $1.00 per gallon is imposed on sellers of gasoline, the supply curve for gasoline shifts upward, but by less than
    8·1 answer
  • Gilmore, Inc. recently embarked on an effort to increase coordination and cooperation within the company. During the process, Gi
    9·1 answer
  • A firm has zero debt in its capital structure. Its overall cost of capital is 8%. The firm is considering a new capital structur
    9·2 answers
  • Clearwater Hampers is a small British company that sells luxury food and drink gifts in various combinations in picnic hampers.
    8·1 answer
  • There are several reasons why the petty cash fund would experience a shortage or an overage. Determine which of the actions belo
    12·1 answer
  • During 2020 Came Corporation transferred inventory to Nolan Corporation and agreed to repurchase the merchandise early in 2021.
    11·1 answer
  • Regional Lumber Company and Superior Builders Corporation enter into a contract for a sale of wood products. Regional, a merchan
    5·1 answer
  • Aber Inc. plans to develop a shopping center. In the first quarter, they spent the following amounts: Acquisition of land $15000
    7·1 answer
  • HELP!
    11·2 answers
  • Which of the following statements are true about recession?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!