Accounting Theory Is earnings management good or bad? 10 marks
Accounting Theory
Is earnings management good or bad? 10 marks
Homework Answers
ANSWER: Earnings management refers to a strategy applied by company’s management to deliberately manipulate the earnings of an organisation to match the figures with a pre-determined target. It reduces the financial reporting quality; it can interfere with the allocation of resources in the economy and can result to negative consequences to the financial market. The earnings management is bad when management manipulate financial reports either to mislead certain stakeholders about the underlying economic performance of the organisation. The costs of uncovering inside information in a company are usually too high. However earnings management have fortunately a “good” side too when management alternate financial statements to influence outcomes of contractual which heavily depend on reported accounting numbers
Any time management makes an estimate, there is the risk of earnings management or fraud. Accounting...
Any time management makes an estimate, there is the risk of earnings management or fraud. Accounting for bad debts requires management to make an estimate on the future collectability of receivables. Why this could be an area at risk for earnings management?
Question 4 (20 marks) Part A (10 marks) Explain the difference between financial accounting and management...
Question 4 (20 marks) Part A (10 marks) Explain the difference between financial accounting and management accounting with reference to the following characteristics. (10 marks) Characteristie Financial Accounting Management Accounting General definition Types of reports produced and relevant regulations Users of reports produced One example of a typical accounting task undertaken in the area
Robotic surgery for implant management is good or bad? Critically comment。
Robotic surgery for implant management is good or bad? Critically comment。
Define the phrase "earnings management" and distinguish between earnings management and fraudulent accounting? Under what circumstances,...
Define the phrase "earnings management" and distinguish between earnings management and fraudulent accounting? Under what circumstances, if any, is it acceptable for corporate executives to employ earnings management tactics?
Using theory and research evaluate 3 safety issues (good or bad) in the real world setting...
Using theory and research evaluate 3 safety issues (good or bad) in the real world setting and make recommendations to mitigate these safety issues
Question One Distinguish between traditional management accounting and strategic management (20 marks) What do we mean...
Question One Distinguish between traditional management accounting and strategic management (20 marks) What do we mean by the term "cost" as regards to management accounting? (5 marks) (Total : 25 marks) a) accounting. b) Question Two (10 marks) Discuss the signi ficance of budgeting in any business organization. a) Distinguish between a functional organization structure and a divisionalized b) (15 marks) (Total : 25 marks) organizational structure. Question Three (13 marks) Discuss the FOUR major perspectives of the balanced scorecard...
using organizational theory and agency theory discuss the different roles played by financial and management accounting...
using organizational theory and agency theory discuss the different roles played by financial and management accounting in organizations
Question 2 How do the three key hypotheses of Positive Accounting Theory (PAT) explain managerial motivations...
Question 2 How do the three key hypotheses of Positive Accounting Theory (PAT) explain managerial motivations for corporate earnings management? Make use of appropriate academic evidence in supporting your arguments (50 marks)
Describe the contingency theory of management accounting and discuss the relationship between various contingent factors and...
Describe the contingency theory of management accounting and discuss the relationship between various contingent factors and features of the management accounting system.
Q12. Lean accounting incorporates which of the following? A) Total Quality Management B) The Theory of...
Q12. Lean accounting incorporates which of the following? A) Total Quality Management B) The Theory of Constraints C) Just-in-time D) All of the above Enter correct choice & provide justification for your choice in the space box below (2 marks) Q13. Risk that emerges in the form of a breakdown in internal processes is known as: A) Operational Risk B) Reputation Risk c) Competitive Risk D) Asset Impairment Risk Enter correct choice & provide justification for your choice in the...
Question 4 (20 marks) Part A (10 marks) Explain the difference between financial accounting and management accounting with reference to the following characteristics. (10 marks) Characteristie Financial Accounting Management Accounting General definition Types of reports produced and relevant regulations Users of reports produced One example of a typical accounting task undertaken in the area
Question One Distinguish between traditional management accounting and strategic management (20 marks) What do we mean by the term "cost" as regards to management accounting? (5 marks) (Total : 25 marks) a) accounting. b) Question Two (10 marks) Discuss the signi ficance of budgeting in any business organization. a) Distinguish between a functional organization structure and a divisionalized b) (15 marks) (Total : 25 marks) organizational structure. Question Three (13 marks) Discuss the FOUR major perspectives of the balanced scorecard...
Question 2 How do the three key hypotheses of Positive Accounting Theory (PAT) explain managerial motivations for corporate earnings management? Make use of appropriate academic evidence in supporting your arguments (50 marks)
Q12. Lean accounting incorporates which of the following? A) Total Quality Management B) The Theory of Constraints C) Just-in-time D) All of the above Enter correct choice & provide justification for your choice in the space box below (2 marks) Q13. Risk that emerges in the form of a breakdown in internal processes is known as: A) Operational Risk B) Reputation Risk c) Competitive Risk D) Asset Impairment Risk Enter correct choice & provide justification for your choice in the...
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