DISCUSSION

Jul 4th, 2013
Anonymous
Category:
Accounting
Price: $15 USD

Question description

Companies often try to keep accounting earnings growing at a relatively steady pace,
thereby avoiding large swings in earnings from period to period. They also try
to meet earnings targets. To do so, they use a variety of tactics. The simplest
way to control the timing of accounting revenues and costs, which all firms can
do to at least some extent. For example, if earnings are looking too low this
quarter, then some accounting costs can be deferred until next quarter. This
practice is called "earnings management". It is common, and it raises
a lot of questions. Why do firms do it? Why are firms even allowed to do it
under GAAP? Is it ethical? What are the implications for cash flow and
shareholder wealth?





 



 


 





 




Tutor Answer

(Top Tutor) smilingraj2k2
School: Duke University
PREMIUM TUTOR

Studypool has helped 1,244,100 students

Review from student
Anonymous
" Awesome! Exactly what I wanted. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1826 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors