Explain when and why the users of financial statements are not able to detect earnings management.

Q: What is the impact on A Company financial statements if the company forgets to recognize that…

A: Unearned Revenue - Unearned Revenue is the revenue which is not earned by the company but amount…

Q: Financial accounting is one of the branches of accounting specialized in recording, classifying,…

A: Financial accounting is used to prepare financial statement which helps in calculating Revenue…

Q: Which one of the following statements is not correct regarding financial accounting and management…

A: Financial Accounting - This is a branch of accounting under which business transactions are recorded…

Q: Explain the problems associated with inappropriate accounting practices.

A: Fraud: Fraud is a malicious act committed by people to fulfill their personal benefits. In case of…

Q: 1. Explain how managers use the accounting standards to manage company's earnings.

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

Q: What are some of the internal controls that an accountant should put into place to determine if…

A: Accounts payable controls are designed to help mitigate loss risk in the accounts payable function.…

Q: both financial and management accounting rely exclusively on gaap for reporting true false

A: Financial accounting is that branch of accounting which deals with preparation and circulation of…

Q: Please explain in your own words the issues that a financial analyst may encounter without…

A: The ledger accounts will be prepared taking the journal as the source document. The ledger accounts…

Q: Explain fraudulent financial reporting.

A: The examples of fraudulent financial reporting are:  • Modifying the time of recording sales to…

Q: Which of the following is not an external user of a business’s financial information? Taxing…

A: The financial information of the company is used by many internal & external users for getting…

Q: accounting cycle is the preparation of the financial

A: Financial statements: Financial statements are a collection of statements that convey to interested…

Q: Which one of these statements about the accrual-basis of accounting is false? This basis is in…

A: Cash basis of accounting recognize the expenses or revenues when they are paid or received. Accrual…

Q: Why would a client ask an accountant to report on a financial statement element?

A: Definition:

Q: An accountant need not assess compliance with independence rules duringa. An examination of…

A:

Q: State whether the following statement is true or false. "Accounting relies on inexact or approximate…

A: Financial Statements are the outcomes of accounting concepts and conventions combined with…

Q: What practical difficulties are encountered by a trader due to incompleteness of accounting records?

A: Some practical difficulties are encountered by a trader due to incompleteness of accounting records…

Q: How can SPEs be used to manipulate financial statements? Give one real case example on the misuse of…

A: Special purpose entities are the subsidiaries created for a specific purpose. These are used to…

Q: Describe the difference between errors and fraud in financial statements.

A: Definition: Auditor: The auditor is an accounting professional hired by a company to review the…

Q: True or false: Studying the relationship of financial information with another information, whether…

A: The question is related to Auditing and is of Analytical procedure. It is the evaluation of…

Q: Any time management makes an estimate, there is the risk of earnings management or fraud. Accounting…

A: Earning Management and Bad debts Earning management is the important department in every company. In…

Q: What are the common errors in accounting?

A:

Q: factor that could explain why the falsifying of financial statements is occurring so frequently.

A: The practice of utilizing innovative accounting procedures to make a firm's financial statements…

Q: Financial accounting information is characterized by all ofthe following except:a. It is historical…

A: Financial accounting information will be information about a business element's exchanges. From…

Q: Why are some managers motivated to manipulate amounts reported in the financial statements?

A: Financial statements are prepared at the end of the year to analyse the financial position and cash…

Q: Which one is not the fraudulent financial reporting? Select one: a. Cash shortage b. Lack of working…

A: Fraudulent financial reporting :              The fraud practices which hinders the objective of…

Q: Shareholders are external user of accounting information . The answer is true or false

A: The objective of the financial statement or accounting information is to provide information about…

Q: what are the difficulties may users of financial statements face it in using financial or accounting…

A: Accounting disclosure information: It is information that shows expenses and revenues of the…

Q: How reported accounting numbers can affect an individual's perceptions and actions.

A: Financial reporting means releasing the financial reports of the company to its shareholders and in…

Q: Needles talks about the use of a continuum ranging from questionable or highly conservative to fraud…

A: Definition: Earnings: The bottom line of an income statement which is the result of excess earnings…

Q: When do firms manage earnings in their reports?

A: Earnings are profits of a company. investors and analysts look to earnings to determine the…

Q: Financial accounting data prepared in accordance with GAAP. But management accounting don’t follow…

A: The answer for the theory question on Financial Accounting vs Management Accounting is presented…

Q: How does the concept of consistency aid in the analysis of financial statements? Why type of…

A: General accepted accounting principles means those set of standards which is followed while…

Q: Understand the reporting of accounting changes and errors.

A: Accounting Changes and Errors: Meaning: Error Correction and Accounting changes are guidance that…

Q: Are there any red flags in financial statement analysis?

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Explain the difference between earnings management and financial statement fraud.

A: Definition: Fraud: It refers to the intentional misrepresentation of the financial information or…

Q: How can adjustments to the standardized financial statements be made in order to undo these…

A: Accounting distortions are differences between the data shown in financial statements and actual…

Q: describe accounting warning signs and methods for detecting manipulation of informationin fi nancial…

A: Accounting warning signs are the indication that the financial statements are going to manipulation…

Q: How can you tell the difference between accounting mistakes and accounting fraud in financial…

A: This question tells about the difference between accounting mistakes and accounting fraud in…

Q: Financial accounting is concerned with how and why profits arise. Select one: True False

A:

Q: Discuss the types of errors in financial accounting and explain why some errors need to go through…

A: Accounting errors are the events which occur unintentionally and not for misleading the information…

Q: Explain how REA databases are able to support financial statement reporting when they do not employ…

A:

Q: Identify reporting issues related to fraudulent financial reporting and financial forecasts

A: Financial reporting: The financial results of an organization related to a period are declared and…

Computerized Accounting System

The Computerized Accounting System is generally a system of maintaining accounts using computers. In this method of accounting system, the accounting transactions are processed through the use of hardware and software to generate the reports such as journals, ledgers, trial balance, trading account, P/L accounts, balance and other reports.