Evaluate earnings management from a utilitarian perspective. Can earnings management be an ethical practice? Discuss why or why not.

Q: Explain the difference between conservative and aggressive accounting practices.

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Q: Discuss how earnings management is used as a tool to reduce sensitivity to political pressure.

A: Earning management is being associated with the use of discretionary accounting accruals in order to…

Q: Define the phrase “earnings management.” Under what conditions, if any, is earnings management…

A: Payments and receivables are managed in connection to purchases in earnings management. It is done…

Q: Explain the political cost hypothesis of Positive Accounting Theory.

A: Positive accounting:   It is referred to as the branch of accounting research that helps to explain…

Q: distinguish between conservative and aggressive accounting;

A: Accounting is the process through which financial statement are recorded, analyzed, summarized and…

Q: Define materiality.  How does materiality come into play when assessing financial statement…

A: Materiality is the threshold above which missing or incorrect information in the financial…

Q: explain the relationship between culture and the adoption of accounting practices

A: Culture includes the beliefs, ideas and customs followed by the individuals in a particular society.…

Q: A process that create a financial position that offsets the risk of an ongoing business process is…

A: Transfer of risk: Transfer of risk is one the strategy for risk management. This involves transfer…

Q: Analyze and discuss when earnings management may be an ethical practice and when it is an unethical…

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Q: Employees need the financial analysis to know if

A: Financial analysis refers to the process of evaluating the business operations, performance and…

Q: What are the costs and benefits of management’s use of judgement in financial reporting?

A: Management is the internal part of any organization and thus it plays a very crucial role in making…

Q: Management often considers which of the following when making business decisions? O both financial…

A: When making business decisions management considers factors like financial viability of the decision…

Q: Critically comment on Positive Accounting Theory (PAT) (

A: Accounting is a process that involves the recording of the transactions of financial nature.

Q: How would you define business ethics?

A: Business ethics: Business ethics is a practice of suitable commercial rules concerning possibly…

Q: s of financial management and provide strategies used by financial managers to overcome/avoid these…

A: Step 1   Financial risk management is the process of dealing with and controlling potential and…

Q: quality of accounting standards?

A: Accounting standards determine thee accounting information must have relevance, must be reliable and…

Q: Evaluate the following statement: Do the ends of positive organizational consequences justify the…

A: Earning management is an accounting device that is used to produce the economic statements showing…

Q: What is the so-called BUSINESS JUDGMENT RULE? Discuss

A: Business Judgment Rule:- The business judgment rule is a presumption that in creating a business…

Q: What is the cornerstone of accounting ethics?

A: Introduction: Accounting ethics is a subset of applied ethics that is linked to business ethics and…

Q: Why are stakeholders important in accounting ethics?

A: Stakeholders' refers to the person(s) or a group who has some interest in a company and can be…

Q: Reported accounting earnings provide valuable information to investors, lenders and regulators.…

A: While most managers see executive compensation as immoral, managers who have worked in firms with…

Q: Why might one expect managers to act in shareholders' interests? Give some reasons.

A: Managers would act in shareholders’ interests as a result of they need a duty to act in their…

Q: What is Fair Value Accounting? What are the factors contributing toward the trend of fair value…

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

Q: What is meant by “economic Consequences” in accounting standard-setting

A: Definition: Financial accounting standards board (FASB): This is the organization that creates,…

Q: Consider why earnings management is considered important by many managers and management teams.…

A: Answer:-  Earnings management meaning:- Earnings management is the use of accounting practices to…

Q: activities need judgment in preparing the accounting earnings

A: Accounting earnings is the net income earned from conducting the business of the entity. It is…

Q: Examine the advantages and disadvantages of interpretative accounting theory

A: Introduction : Interpretive Accounting theory has developed and contributed significantly to our…

Q: Which theory predict the facts but not assume any particular outcome? O a. Normative theory O b.…

A: The question is multiple choice question. Required  Choose the Correct option

Q: Discuss why ethics is important in the finance industry and examine how using an ethical framework…

A: The financial industry has given us countless scandals and news stories about professionals who have…

Q: How are financial accountants pressured when they need to make ethical decisions in their work? Is…

A: The GAAPs provide the guidelines on accounting policies to be followed in the preparation and…

Q: Why is ethical behavior important to business?

A: Ethics: Ethics is a system of acceptable beliefs to control behavior and activities that are…

Q: Describe earnings quality and how it is impacted by management practices to alter reported earnings.

A: Quality of earnings: It is referred to the amount of earning which is earned by higher sales or as a…

Q: how do compensation plans, including bonus structures, drive behavior?

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

Q: A)Differentiate between traditional reporting and Integrated reporting.   B)   Evaluate earnings…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: ther positions can you think of that are related to financial m

A: Introduction : In simple words, financial management relates to the operations with regard to…

Q: Why does the Accounting system used for financial statement preparation not always provide the…

A: Management needs detailed information for making a decision. Many times accounting systems do not…

Q: Using earning management concept,

A: Answer : The revenue recognition principle is a cornerstone of accrual accounting together with the…

Q: Why is pro forma earnings reporting coming under scrutiny? How can you mitigate the "bad press"…

A: Pro forma earnings reporting refers to those financial statements that have hypothetical amounts as…

Q: Explain why it is difficult for researchers to convincingly document earnings management.

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Q: Explain why the information produced by the management accountant must be concerned with the future…

A: Management accounting is that branch of accounting which helps in decision making with the help of…

Q: Explain the links between stock price, intrinsic value, and executive compensation

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: which manner the manager behave when choosing a particular accounting method to increase the…

A: Earnings management can be defined as the accounting method in order to depict a positive view in…