Explain how using financial ratios can help spot these tricks. 2. Why is it important to analyze profitability, specifically focusing on return on investment? Invoke the breakdown of ROI in thinking about your response.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 16MC: Which of the following is true about earnings management? A. It works within the constraints of...
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1. Name and explain three tricks that management can play to manage earnings. Explain how using financial ratios can help spot these tricks.

2. Why is it important to analyze profitability, specifically focusing on return on investment? Invoke the breakdown of ROI in thinking about your response.

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