Evaluate the following statement: Do the ends of positive organizational consequences justify the means of earnings management?

Q: Discuss the Cost- Volume- Profit assumptions and its importance to the business organization in…

A: Cost Volume Analysis is a process of study of the relation between the costs of the product, volume,…

Q: what is financial leverage and its implications for company performance?

A: Company borrow amounts to buy assets and do business.

Q: How do the DuPont technique helps the firm’s managers to further analyze its returns?

A: DuPont analysis is referred to as the framework regarding the analysis of the fundamental…

Q: How do companies add value, and what arethe dimensions of performance that customersare expecting of…

A: Step 1: The companies may add through the following things: Research and development, Proper…

Q: The following are investment criteria: net present value, payback, profitability index, average…

A: The question is based on the concept of capital budgeting techniques , to ascertain the true worth…

Q: How does managerial accounting differ from financial accounting?

A: Accounting: Accounting is an art of collecting, recording, summarizing and presenting the financial…

Q: Which statement below best describes a profit center?a. The authority to make decisions affecting…

A: Answer c. The authority to make decisions over the most significant costs of operations, including…

Q: If markets are truly efficient, does it matter whether firms engage in earnings management? On the…

A: If the company concentrated on earnings management then the market is not truly efficient.

Q: The amount and trend in gross profit is closely monitered by management in assessing the…

A: Gross Profit = Total Sales revenue - Cost of Goods sold Net Profit = Gross Profit - Operating…

Q: Why is it that the goal of financial management is maximization of shareholders’ wealth rather than…

A: Financial management is defined as the planning, organizing, directing, and also the controlling of…

Q: up between owners and managers and how

A: Profit maximization and value maximization are two financial management approaches that define the…

Q: What does this say about the company's profitability?

A: We are provided with three profitability ratios here - net profit margin ratio, ROA and ROE - and we…

Q: is the concept of financial management? A goal of financial management is to maximize the…

A: Financial management is very important departments of the company and with course of time value of…

Q: goal of financial management is to maximize the shareholders' value. What are the pros and cons o

A: Basic objective of financial management is to increase the value of shareholders and to increase the…

Q: Which method might you prefer if you were a manager and your bonus was tied to a financial…

A: In organization, there are two type of inventory system followed. (1) Periodic inventory system (2)…

Q: intrinsic

A: The board of directors of the company generally expect the management to focus on maximizing the…

Q: What goals might be persued by managers instead of maximization of shareholders wealth

A: Goals of financial management should be so articulated as to help achieve the objective of wealth…

Q: What is the significance of managerial economics in Accountancy?

A: Accountancy is related to summarizing, recording, classifying, analysing and bookkeeping the…

Q: standard setters?

A: Earnings management for contracting causes would be an interest in standard setters because of the…

Q: What is meant by earnings persistence?

A: Earning persistence is one of the attributes of accounting earnings. Basically, it means the…

Q: “A financial productivity measure contains more information than an operational productivity measure…

A: Introduction: Operational productivity is the ratio of output units to input units, and physical…

Q: what does it mean to say that managers should maximize shareholders wealth subject to ethical…

A: Share- It is a unit of ownership in a company's capital. It entitles the shareholder to an equal…

Q: What is the implication of managerial entrenchment: should company favor debt or equity? Why?

A: Managerial entrenchment theory-says that allotment of shares inside the organization such as…

Q: How might managerial incentives affect the analysis of earnings persistence?

A: Analysis of earnings persistence Earning persistence which was indicating that the total earning…

Q: What are some of the pros and cons of using stockoptions to compensate managers?

A: Employee stock options: Stock options are the non-monetary incentives that are given to particular…

Q: Define earnings quality.

A: Earnings quality refers to the ability of total income by predicting future earnings of the company.

Q: Why would managers misrepresent the financial results oftheir companies?

A: Fraud:   It is an intentional misappropriation of the assets or the financial records of an…

Q: analyze

A: Profitability analysis refers to allocation of expenses & analyzing the profits or earnings of…

Q: when a client notices a discrepancy between annual profits calculated by the accountant versus your…

A: 1. Accountant’s Cash-based Profit: The accounting method in which the revenue is the amount of cash…

Q: What is an operational productivity measure and a financial measure?

A:

Q: Assets are the resources of a company and are expected to yield future benefits.  Group of answer…

A: The resource is an item that can be used in the business to generate profits and revenues.

Q: How the RISK affects EFFICIENCY (operational or financing) that subsequently affects RETURN (for…

A: Answer: A shareholder is an individuaal or a company who owns sharres in a company. Shareholders are…

Q: Describe earnings quality and how it is impacted by management practices to alter reported earnings.

A: Quality of earnings: It is referred to the amount of earning which is earned by higher sales or as a…

Q: Explain the efficiency perspective and the opportunistic perspective of Positive Accounting Theory.…

A: Positive accounting:   It is referred to as the branch of accounting research that helps to explain…

Q: Why performance ratio in a business or company is important?? *Purpose of performance ratio?…

A: Performance Ratio: The performance ratio, often known as PR, compares the actual production for a…

Q: how do compensation plans, including bonus structures, drive behavior?

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Why is customer-profitability analysis an important topic to managers?

A: Customer profitability analysis helps management in allocating profitability to each customer, but…

Q: Explain how a CVP analysis would be useful for determining whether the investment is worth it. Also,…

A: Cost value analysis (CVP) determines how the changes in costs and volume affects operating income…

Q: What is the uses and fucntions of Executive Performance Measures and Compensation?

A: Answer: Executive performance measures and compensation both are related terms to each other in any…

Q: How the RISK affects EFFICIENCY (operational or financing) that subsequently affects RETURN (for…

A: A shareholder is an individual or company who owns shares in a company. Shareholders are granted…

Q: Using earning management concept,

A: Answer : The revenue recognition principle is a cornerstone of accrual accounting together with the…