Which of the following are methods by which management can manipulate earnings and possibly lower the quality of reported earnings?
(a) Changing an accounting policy to increase earnings.
(b) Refusing to take a loss on inventory in an accounting period when the inventory is known to be obsolete.
(c) Decreasing discretionary expenses.
(d) All of the above.

Answers

Answer 1

Management can manipulate earnings and potentially lower the quality of reported earnings through various methods, including changing accounting policies, refusing to take a loss on obsolete inventory, and decreasing discretionary expenses.The correct option is (d) All of the above.

(a) Changing an accounting policy to increase earnings involves altering the way financial transactions are recorded, which can lead to inflated profits. This may misrepresent the company's financial performance and mislead investors or stakeholders.

(b) Refusing to take a loss on obsolete inventory in an accounting period involves not recognizing the decrease in inventory value when it is known to be outdated. By not acknowledging the loss, management can create an illusion of higher earnings, which might be unsustainable in the long run and deceive interested parties.

(c) Decreasing discretionary expenses refers to the practice of cutting costs that are not essential to the company's operations, such as advertising or research and development. While this may lead to higher earnings in the short term, it can have negative consequences on the company's long-term growth and competitiveness.

In summary, these practices may provide a temporary boost in reported earnings but can ultimately compromise the quality and reliability of the company's financial statements. It is crucial for investors, regulators, and other stakeholders to be vigilant in detecting these manipulations to ensure accurate and transparent financial reporting.

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Related Questions

the difference between an employee and an independent contractor is the degree of control the principal has over the agent. true or false?

Answers

True. It is true that the level of control the principal has over the agent determines whether the person is an employee or an independent contractor.

An independent contractor functions as a separate and distinct entity from the agent and employee, who work under the control and supervision of the principal. As a result, an independent contractor performs services under his own supervision and control. Independent contractors' methods, tactics, and specifics of work are not controlled by employers. However, an employee works in the employer's business, under his employer's direction and supervision, and does not act as a separate and distinct organisation.

According to the method of payment, an employer and an employee might also be separated. An employee is paid regularly by their employer and is listed on their payroll. An independent contractor, however, is paid for each task completed. Another distinction is that an employee uses equipment and supplies given by the employer, but an independent contractor uses his own equipment and supplies.

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Sally has done well in her statistics class so far this term. Despite her good grades, Sally is worried that she will not do well on her upcoming test. So she studies extra hard. What best accounts for Sally's study pattern?

Answers

Answer: defensive pessimism

Explanation:

Defensive pessimism is a strategy that anxious people uses in order to help manage their anxiety which will in turn help them work productively.

Defensive pessimists try as much as possible to lower their expectations in order to help them prepare for the worst that may happen. This is the strategy used by Sally.

How important is money

Answers

Answer:

very important

Explanation:

money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.

A firm is selling two products-chairs and bar stools—each at $50 per unit. Chairs have a variable cost of $25, and bar stools $20. The fixed cost for the firm is $20,000.

a. If the sales mix is 1:1 (one chair sold for every bar stool sold), what is the break-even point in dollars of sales? In units of chairs and bar stools? (Round your unit answers to a whole number before calculating the breakeven point and round the break-even point to the nearest whole number.)
Break-even point______
Number of chairs_____
Number of bar stools_____

b. If the sales mix changes to 1:4 (one chair sold for every four bar stools sold), what is the break-even point in dollars of sales? In units of chairs and bar stools? (Round your unit answers to a whole number before calculating the breakeven point and round the break-even point to the nearest whole number.)
Break-even point______
Number of chairs_____
Number of bar stools_____

Answers

In both scenarios, the break-even point in dollars of sales is $26,895, with 489 chairs and bar stools sold.

The break-even point is the point at which a company's total revenue equals its total costs, resulting in zero profit or loss. To calculate the break-even point in dollars of sales, we need to consider the sales mix and the costs associated with each product.

a. If the sales mix is 1:1, meaning one chair is sold for every bar stool sold, the total cost for each unit sold is $45 ($25 + $20). The fixed cost is $22,000. To find the break-even point in units, we divide the fixed cost by the contribution margin per unit: $22,000 / $45 = 488.89. Since we can't sell a fraction of a unit, we round up to the nearest whole number, which gives us 489 units.

To find the break-even point in dollars of sales, we multiply the break-even point in units by the selling price per unit: 489 x $55 = $26,895.

b. If the sales mix changes to 1:4, meaning one chair is sold for every four bar stools sold, the total cost for each unit sold is $29 ($25 + 4 * $20). Using the same formula as in part a, we find the break-even point in units is 488.89. Rounding up to the nearest whole number gives us 489 units.

To find the break-even point in dollars of sales, we multiply the break-even point in units by the selling price per unit: 489 x $55 = $26,895.

In both scenarios, the break-even point in dollars of sales is $26,895, with 489 chairs and bar stools sold.

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When you complain to your supervisor that the new company software is not working correctly, you are using downward communication
O True
O False

Answers

False

Because downward communication occurs when information and messages flow down through an organization's formal chain of command.

Hope it helps...

Answer:

False

Explanation:

downward communication is the flow of information and messages from a higher level inside an organization to a lower one.

what are the legal requirements that an organization adopt a standard based on what a prudent organization should do, and then maintain that standard?

Answers

The legal obligations for adopting and upholding a rule based upon what a responsible company would do are known as "due care" and "due diligence."

What does the word "diligent" mean?

Assiduity is the ability to labor diligently and painstakingly to complete a task with consistency, sincerity, and vigor. demonstrated excellent attention in finding the story. For his honesty, justice, and diligence, he had gained the respect of all.

Who are the diligent people?

A diligent person puts up consistent, diligent effort when performing a task. In this sense, perseverance demands patience, therefore diligence may be seen of as a mix of the both hard labor and patience. It is also among a person's most crucial qualities.

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Discuss how the cost of capital is determined in segmented vs. Integrated capital markets?

Answers

In segmented capital markets, the cost of capital is essentially determined by the domestic systemic risk of a security.

In integrated capital markets, on the other hand, the cost of capital is determined by the global systemic risk of securities, regardless of nationality.

The capital market is a financial market that buys and sells long-term debt securities or stock-backed securities, as opposed to a money market that buys and sells short-term debt securities.

Examples of highly organized capital markets are the New York Stock Exchange, the US Stock Exchange, the London Stock Exchange, and NASDAQ. Instead of trading on an organized stock exchange, securities can also be traded "over-the-counter".

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25.A firm’s earnings are a true representation of cash flows available to the stockholders.
A) True
B) False

Answers

The given statement that "A firm’s earnings are a true representation of cash flows available to the stockholders" is False. While earnings are an important metric for evaluating a firm's performance, they do not necessarily provide a complete representation of the cash flows available to stockholders. Therefore the correct option is B) False.

To have a comprehensive understanding of a company's cash flow situation, it is crucial to consider two key aspects: operating cash flows and investment cash flows.

1. Operating Cash Flows:

Operating cash flows reflect the cash generated or used by a company's core operations. They represent the cash inflows and outflows resulting from day-to-day business activities, such as sales, production, and expenses. Operating cash flows provide insights into the company's ability to generate cash from its core operations and fund its ongoing expenses.

2. Investment Cash Flows:

Investment cash flows pertain to the cash inflows and outflows associated with a company's capital investments. These activities involve purchasing or selling long-term assets, such as property, equipment, or investments in other companies. Investment cash flows demonstrate how a company is allocating its resources to grow the business and generate future cash flows.

Both operating cash flows and investment cash flows are essential components of a company's financial statements and provide valuable information about its cash flow position. They contribute to a more comprehensive understanding of the cash flows available to stockholders.

In conclusion, the given statement is False. While earnings play a role in assessing a firm's financial performance, they do not provide a complete representation of the cash flows available to stockholders. It is crucial to consider operating cash flows and investment cash flows to gain a more accurate understanding of a company's cash flow situation.

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Marketing was once understood in the sense of making a sale. Today, marketing is understood in the new sense of A. eliminating promotion B. satisfying customer needs C. developing innovative products. D. telling customers what they need E. not engaging customers

Answers

Answer:

d would probably be the best answer

Marketing is understood in the new sense of B. satisfying customer needs.

In the past, marketing was primarily focused on making a sale and promoting a product or service.

However, modern marketing places a greater emphasis on understanding and meeting the needs and wants of customers.

This includes conducting market research to identify customer preferences, developing products or services that meet those preferences, and using targeted marketing strategies to reach and engage customers. By focusing on satisfying customer needs, businesses can build long-term relationships with customers and create loyal brand advocates.

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Dont worry about me, I just added this answer so the other person can get their brainliest because they definetly deserve it

Answers

HI HI HI HI HI HI HI HI WATER IS H20

What? Are you ok buddy

In 2016 based on people ages 15-74 the Swedish adult non-institutionalized population was about 7. 3 million, the labor force was 5. 2 million, and the number of people employed was 4. 8 million. According to these numbers, the Swedish labor force participation rate and unemployment rate were about


a. 71. 2% and 7. 7%


b. 71. 2% and 5. 5%


c. 65. 8% and 7. 7%


d. 65. 8% and 5. 5%

Answers

According to these numbers, the Swedish labor force participation rate and unemployment rate were about option a: 71.2% and 7.7%.

To calculate the labor force participation rate and unemployment rate, we need to use the following formulas:

Labor Force Participation Rate = (Labor Force / Adult Non-Institutionalized Population) * 100

Unemployment Rate = (Unemployed / Labor Force) * 100

Given the information provided:

Adult Non-Institutionalized Population = 7.3 million

Labor Force = 5.2 million

Number of People Employed = 4.8 million

Using the formulas above, we can calculate the rates:

Labor Force Participation Rate = (5.2 million / 7.3 million) * 100 = 71.23%

To calculate the number of unemployed people, we subtract the number of employed people from the labor force:

Unemployed = Labor Force - Number of People Employed

Unemployed = 5.2 million - 4.8 million = 0.4 million

Unemployment Rate = (0.4 million / 5.2 million) * 100 = 7.69%

Rounding these values to one decimal place, we find that the labor force participation rate is approximately 71.2% and the unemployment rate is approximately 7.7%.

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a discarded credit card receipt or utility bill could be the starting point from which a perpetrator finds enough information to assume a victim’s _______________.

Answers

A discarded credit card receipt or utility bill could be the starting point from which a perpetrator finds enough information to assume a victim's identity.

Identity theft is a serious crime where someone fraudulently obtains and uses another person's personal information, such as their name, address, Social Security number, or financial account details, for financial gain or other malicious purposes.Credit card receipts often contain partial credit card numbers and merchant information, while utility bills typically include personal details like name, address, and sometimes even account numbers. With these initial pieces of information, a skilled perpetrator can employ various techniques to gather additional data, such as conducting online searches or social engineering.

Once armed with enough information, the perpetrator can apply for new credit cards, loans, or financial accounts in the victim's name, make unauthorized purchases, or even commit more severe crimes, such as money laundering or identity fraud.To protect against such threats, it is crucial to handle personal documents and financial information securely. Shredding documents with sensitive information, regularly monitoring financial accounts, and employing strong passwords are some preventive measures individuals can take to mitigate the risk of identity theft.

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How has the Internet changed entertainment marketing?

Answers

Explanation:

The evolution of the internet has made it possible for artists to target and grow fan followings all over the world. This means that the typical type of venue has also shifted. Instead of targeting one city or area, artists can advertise their new releases, concerts, and merchandise via social media posts.

what is the impact of atm on banking sector? ​

Answers

Answer:

Explanation:

ATM s are of great use to the banks as the reduce the number of people storming the banks for withdrawal of money as well as deposit of money it reduces cost of operation and from customer point of view it is available easily near by hence travelling further distance to the bank is not required

ATMs are one of the most convenient services provided by the banks to customers. It is beneficial to banks as it is to its customers. It helps banks to save cost and time in withdrawing money and various other services which are now provided by ATM.

Automated teller machines, or ATMs as they are more commonly referred to, are a convenient way to conduct one-on-one transactions quickly and easily. One can do self-serviced transactions with these machines without a physical teller's aid or a trip to the bank branch. Cash withdrawals, cash deposits, and fund transfers are just a few of the many transactions possible with automated teller machines, or ATMs. Although the majority of customers only use ATMs to withdraw cash, these additional transactions make the service more effective.

With the advent of the ATM, users' financial lives became simpler because they could now perform simple transactions on their own with the aid of an ATM, which was much more practical than often visiting the bank. The ability for users to transact between banks is another significant advantage of an ATM. This means you can still use basic services like cash withdrawals from the ATM even if you don't have an account with the bank that runs the machine. Again, this saves you time and comes in handy in an emergency because you won't need to go to the ATM at your bank every time you need a quick infusion of cash. ATM helps banks operate more cheaply by lowering the number of human operations. The ATM provides service 24 hours a day which means customers can avail of money and other services at any time of the day.

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Which cable news network produces the most straight reporting?

A. MSNBC

B. ESPN

C. CNN

D. FOX

Answers

Answer:

C.

Have a good morning✨

Answer:

A

Explanation:

Overbooking is a common practice in the hospitality industry. What are the pros and cons of overbooking? Is overbooking ethical?

Answers

Pros: Helps hotel to achieve 100% occupancy, Maximize expected venue, Long term revenue and profit increase, low risk method to increase profitability and Compensation are cheaper than leaving a room empty
Cons: loss of hotel reputation, alternative arrangement for guests might be more expensive, may revive negative review online ,

The purposeful and deliberate act of overbooking runs counter to any acceptable standard of ethical business practice. In addition to the practice being ripe with serious legal, contractual and consumer protection violations, overbooking forces hospitality personnel into making conscious immoral and unethical choices.

What do you mean by a facilitator? What are the major jobs of a facilitator of non formal educational programme​

Answers

Explanation:

It is important to note that much of the intermittent formal learning throughout people's....Part of being an effective facilitator of informal learning ( and non-formal education) involves.

Answer:

The definition of facilitate is "to make easy" or "ease a process." What a facilitator does is plan, guide and manage a group event to ensure that the group's objectives are met effectively, with clear thinking, good participation and full buy-in from everyone who is involved.

which of the following prevents private market negotiations from adequately addressing an externality? unclear property rights perfect competition allocative efficiency low or zero transaction costs perfectly symmetric information

Answers

Low or zero transaction costs can prevent private market negotiations from adequately addressing an externality.

Transaction costs refer to the costs incurred in the process of conducting economic transactions, such as gathering information, negotiating, enforcing contracts, and monitoring compliance. In the context of addressing externalities, low or zero transaction costs can hinder private market negotiations from effectively resolving the issue.

When there are low or zero transaction costs, individuals or firms may find it difficult or costly to negotiate and reach agreements to internalize the externality. This can be due to various factors, such as the complexity of coordinating multiple parties, the absence of clear property rights, or the lack of information symmetry.

In the presence of externalities, private market negotiations rely on parties voluntarily reaching agreements that internalize the costs or benefits associated with the externality. However, when transaction costs are high or there are informational asymmetries, private negotiations may be inefficient or fail to adequately address the externality. In such cases, alternative mechanisms like government intervention or regulations may be necessary to address the external costs or benefits imposed on society.

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Option A requires eight years of higher education and $80,000, while option B
requires four years of higher education and $45,000. Option B requires
time and
money

Option A requires eight years of higher education and $80,000, while option Brequires four years of higher

Answers

Answer:

A less,less

Explanation:

because option A requires 8 year of higher education and $80,000. but option B only requires four years of higher education and $40,000

Option A requires eight years of higher education and $80,000, while option B requires four years of higher education and $45,000. Option B requires less time and less money because option A requires 8 years of higher education and $80,000 but option B only requires four years of higher education and $40,000. Thus, option 'A' is the correct option.

What do cost and time effective mean?

Business managers must deal with two fundamental issues: time and expenses. These two topics have a lot in common. For instance, you can incur a fee and an increase in costs if you miss a deadline. Similarly to this, if money is tight you could feel pressured to finish a project sooner in order to cut down on labour costs. Thus, managing time and expenditures concurrently provide several advantages for your company.

When practising time and cost management, it is frequently impossible to complete all of the original recommendations. You eventually learn to set priorities and choose which initiatives are worthy of your time, money, and attention. You must discover strategies to improve your efficiency if you want to accomplish more with the money and time you have available.

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what is the opposite of the opposite of left???
if you get it fight you get brainliest!!!!

Answers

Answer:

Opposite of left, right. Opposite of right, left

I lost some brain cells O.O

Answer:

left??? i think

Explanation:

1. The preferred stock of a company pays a quarterly dividend of $3 forever. What is the present value of all dividends? (Assume the discount rate is 3% per quarter.)
2.Suppose a corporate bond that makes semiannual payments has 5 years to maturity. The coupon rate of this bond is 6%, and the yield to maturity is 8%. The bond’s par value is $1,000. What is the bond’s price?
3.You expect to receive three cash flows: $3,000 paid after 2 years, $6,000 paid after 4 years, and $8,000 paid after 6 years. The annual interest rate is 5%. What is the present value of the combined cash flows?

Answers

1. The present value of the preferred stock:Dividend = 3 per quarter,Discount rate = 3% per quarter,Present value of an annuity can be calculated using the formula below:PV = (C / r)(1 - (1 / (1 + r)ⁿ))

Where,PV = present value of an annuity,C = cash flow (payment) per period,r = discount rate,n = number of periods

For quarterly payments, n = 4, so we have:PV = (3 / 0.03)(1 - (1 / (1 + 0.03)¹⁶))

PV = 75(1 - (1 / 1.605))

PV = 75(0.3772)

PV = 28.29

The present value of the preferred stock's dividends is 28.29.

2. The price of the bond can be calculated as follows:Par value of the bond = 1,000,Coupon rate = 6%,Yield to maturity = 8%,Maturity = 5 years.The bond makes semiannual payments, so the number of periods is n = 2 x 5 = 10 years.

We use the formula below to calculate the price of the bond:P = C * (1 - 1 / (1 + r)ⁿ) / r + FV / (1 + r)ⁿ

Where,P = price of the bond,C = coupon payment per period,FV = face value or par value of the bond,r = periodic discount rate (yield to maturity / 2) = 0.04,n = number of periods (10)

substitute the values into the formula:P = 30 * (1 - 1 / (1 + 0.08 / 2)¹⁰) / (0.08 / 2) + $1,000 / (1 + 0.08 / 2)¹⁰

P = 30 * (1 - 1 / 1.46933) / 0.04 + 1,000 / 1.46933⁵

P = 30 * 0.3186 / 0.04 + 1,000 / 1.73596

P = 238.95 + $577.68

P = 816.63

Therefore, the price of the bond is 816.63.

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during her recent performance appraisal, veasna learned that her manager thinks she has a good attitude and emerging leadership potential. veasna’s manager seems to be using a _____ appraisal.

Answers

An appraisal is used to evaluate an employee's performance on the job. The performance appraisal type that was used when Veasna learned that her manager thinks she has a good attitude and emerging leadership potential is;

360-degree

360-degree performance appraisal is the type where employees who are subjected to performance appraisal are given feedback by the person who performed the appraisal.

We see this in the case of Veasna who received positive feedback from her manager. She can then feel encouraged and work harder.

Summarily, the 360-degree performance appraisal was used for Veasna.

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What must a nonprofit health insurance organization do if at the end of the budget year, if they have made a profit

Answers

What must  a nonprofit health insurance organization do is to put the profit earn back into services.

An insurance company is a company which provide insurance coverage for the clients such as:

Health insuranceMedical insurance etc

A nonprofit health insurance is an insurance company which main aim or objectives is not to make profit or earn profit but to rather to provide full insurance coverage for those under their insurance.

Any profit or revenue generated will have to be put back into services for the people under the insurance coverage at the end of the budget year in a situation where they the organization make profit reason being that the insurance company is a nonprofit health insurance organization.

Inconclusion what must  a nonprofit health insurance organization do is to put the profit earn back into services.

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to calculate your monthly lease payment on a three-year lease using the "residual value" of a $26,500 MSRP car, subtract the 48% residual value from the MSRP and divide the result by the number of agreed upon months. What is the approximate monthly payment on a three-year lease agreement?

Answers

Answer:

The approximate monthly payment is $383

Explanation:

Here, we want to calculate the approximate monthly payment on a 3-year lease agreement and we have been told what to do in the question.

Firstly, we start off by subtracting 48% residual value from the MSRP

48% of 26,500 = 48/100 * 26,500 = $12,720

We subtract this from $26,500

That will be $26,500 - $12,720 = $13,780

We have 3 years and that is 36 months

So the approximate monthly payment will be;

$13,780 / 36 = 382.7777777777778 which is approximately $383 to the nearest whole digit

what is the process of taking decision in the office?​

Answers

Answer:

dress code, smile, thinking cap, and due process

Explanation:

u must have all of them to complete your job. if u not fit for work you not going to have a nice day. you must think the due process through and follow guidelines

Wich of the following accounts is credited after the sale of a fully depreciated asset

Answers

Answer:

Relevant asset account is credited

Can anyone help me?
Saving money allows u to set more aside in a(n) ____ fund

Emergency
Bond
Exchange

Can anyone help me? Saving money allows u to set more aside in a(n) ____ fund Emergency BondExchange

Answers

Answer:

Saving money allows you to set more aside in an Emergency fund.

9 48. The stages of human development are: 1.Clear and distinct 2.Varied from person to person 3.Easily navigated 4.Only physical traits​

Answers

Answer:

2. VARIED FROM PERSON TO PERSON

Explanation:

If someone hire you today, what are some skills that you have that you can use in the workplace?

Answers

responsibility, organization, and good sportsmanship to name a few.

If u know what app this is I’ll give u a anime waifu body pillow whoever says the app first!!

If u know what app this is Ill give u a anime waifu body pillow whoever says the app first!!

Answers

I think it’s zoom, give me my body pillow of Mikasa

Answer:

its zoom im on it rn actually XD can I have a kyoko kirigiri body pillow thanks!!

Explanation:

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