Earnings Management Question
Of the following, where can a company find earnings management opportunities (there are 6)...
dividends declared depreciation expense retained earnings, beginning balance bad debt write offs inventory if there is a choice btw LIFO and FIFO delivery timing on sales accounts payable accrued interest payable cash utility expense cash flow from operations net income as defined by US GAAP accumulated other comprehensive income equipment (but not its depreciation) tax rate (consider moving the company to a lower tax area)
depreciation, bad debt, inventory, delivery timing, utility, tax rate
i agree with the first four but not sure about the second 2
i think account payable and accumulated other comprehensive income are the other 2.
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