Why is manipulation of financial statements not only unethical and illegal, but also bad for stockholders?
Homework Answers
Manipulation of financial statements:
When financial statements are modified with the objective to deceive the stakeholders and earn undue advantage this event and action termed as manipulation of financial statements. Investors and creditors analyze financial statements to help them decide whether to invest in the equity securities of a company and whether to loan company funds.
On the other hand, if financial manipulation will be detected by auditors and report in the Audit report this will drastically reduce the wealth of shareholders because share price is down very quickly.
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Why
is manipulation of financial statements not only unethical and
illegal, but also bad for stockholders?
Why is manipulation of financial statements not only unethical and illegal, but also bad for stockholders?
Why is manipulation of financial statements not only unethical and illegal, but also bad for stockholders?
why is it illegal to inflate income statements and how does it affect stockholders?
why is it illegal to inflate income statements and how does it affect stockholders?
Describe some of the limitations of financial statements and how it might lead to unethical or...
Describe some of the limitations of financial statements and how it
might lead to unethical or accounting fraud.
21/Ims/dropbox/user/folder_submit_files.d2l?db=151932&grpid=0&isprv=08bp=0Bou=176296 Hide Folder Information Instructions In a word document describe some of the limitations of financial statements and how that might lead to unethical behavior or accounting fraud. Limit your answer to m.
QUESTION 2 The fraudulent manipulation of earnings on an organization’s financial statements Is the distortion of...
QUESTION 2 The fraudulent manipulation of earnings on an organization’s financial statements Is the distortion of financial statements to suit the preparer’s objectives including increased monetary rewards such as a performance bonus Allows for “income smoothing” which leads to fewer fluctuations in the reporting of earnings which can project a more positive image of themselves and/or the organization Neither a. or b Both a. and b
Moss Exports is having a bad year. Net income is only $60,000. Also, two important overseas...
Moss Exports is having a bad year. Net income is only $60,000. Also, two important overseas customers are falling behind in their payments to Moss, and Moss’s accounts receivable are ballooning. The company desperately needs a loan. The Moss Exports Board of Directors is considering ways to put the best face on the company’s financial statements. Moss’s bank closely examines cash flow from operating activities. Daniel Peavey, Moss’s controller, suggests reclassifying the receivables from the slow-paying clients as long-term. He...
Yoshi believes firmly in the positive view. Which of the following statements best sums up Yoshi’s...
Yoshi believes firmly in the positive view. Which of the following statements best sums up Yoshi’s legal philosophy? a. The law attempts to prohibit all "bad" behavior. b. Any law is real and enforceable if it has been created in accordance with recognized procedures. c. Valid laws prohibit all "morally objectionable" behavior. d. An action that is unethical is also considered illegal in the U.S.
Any publicly-traded U.S. firm must file quarterly financial statements and annual financial statements with the ____...
Any publicly-traded U.S. firm must file quarterly financial statements and annual financial statements with the ____ and also send an annual report that includes their financial statements to their stockholders.
So far we have examined the four financial statements: Income Statement, Statement of Stockholders' Equity, Balance...
So far we have examined the four financial statements: Income Statement, Statement of Stockholders' Equity, Balance Sheet and Cash Flow Statement. Briefly discuss the four statements. Which is the most useful to external users and why?
What are the primary financial statements? What is the purpose of financial statements and why is...
What are the primary financial statements? What is the purpose of financial statements and why is it important to understand them?
What are the primary financial statements? What is the purpose of financial statements and why is...
What are the primary financial statements? What is the purpose of financial statements and why is it important to understand them?
Describe some of the limitations of financial statements and how it
might lead to unethical or accounting fraud.
21/Ims/dropbox/user/folder_submit_files.d2l?db=151932&grpid=0&isprv=08bp=0Bou=176296 Hide Folder Information Instructions In a word document describe some of the limitations of financial statements and how that might lead to unethical behavior or accounting fraud. Limit your answer to m.
Any publicly-traded U.S. firm must file quarterly financial statements and annual financial statements with the ____ and also send an annual report that includes their financial statements to their stockholders.
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