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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