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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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tarbucks entered a partnership with Keurig Green Mountain to sell K-Cup single-serving coffee packs. Because Starbucks _________
kherson [118]

Answer:

E)

Explanation:

It was prepared for this because Starbucks tracked, as part of its ongoing environmental scanning activities, the percentage of households with single-cup brewers. The data that they managed to gather through this study allowed them to quickly determine that there was a large percentage of households with single-cup brewers and therefore the customer base was there. Having a large customer base would drastically increase their chances of obtaining massive profits by simply providing the necessary product to those households, which they plan to do with this partnership.

7 0
2 years ago
Apple is an established firm that encourages and emphasizes entrepreneurial behavior throughout its various divisions. Apple pra
lyudmila [28]

Answer:

Corporate entrepreneurship

Explanation:

Corporate entrepreneurship -

It is the method , adapted to establish some fresh business services , products and processes in an already existing organization is referred to as a corporate entrepreneurship .

This method is adapted in order to generate revenue and incorporate new goods and services .

This method increases the innovation and growth of the existing organisation.

Hence , from the given scenario of the question,

The correct term is Corporate entrepreneurship .

5 0
2 years ago
The average cost to a 50-year-old male for a $100,000 term life policy is $14.34 per month. The same policy would cost a 70-year
77julia77 [94]

Answer: $15, 708.

Explanation:

79.79 - 14.34 (12)(20)

6 0
2 years ago
Salaries Expense before adjustment at September 30, the end of the fiscal year, has a balance of $140,000. The amount of accrued
MatroZZZ [7]

Answer:

income summary 143,100 debit

    salaries expense    143,100 credit

Explanation:

The company will do an adjusting entry to reocrd the expense for the accrued but not payed salaries of the year:

salaries expense 3,100 debit

   salaries payables 3,100 credit

Thus, the total slaries expense for the year would be:

140,000 + 3,100 = 143,100

To close we will leave the expenses balance at zero thus, we will credit this amount against an auxiliary account called income summary.

5 0
2 years ago
Zippy is earning ​$30 comma 000 per year working for​ Joe's Car Repair. He also has savings of ​$150 comma 000​, on which he is
shepuryov [24]

Answer: $105,000

Explanation: In Economics the term profit refers to the amount a company or an individual left with after paying for implicit and explicit cost. Explicit cost means cost paid to others for their services.

While, Implicit cost or opportunity cost is the cost of loosing profits due to choosing one alternative over other. In this case Zippy's salary and his interest on savings is his implicit cost.

therefore,

Economic profit = $250,000 - ( $30,000 + $15,000 + $100,000 )

                          =  $105,000

8 0
2 years ago
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