Question and Analysis – Earnings Management and Quality
1) Chapter 6: Questions and Exercises: 6.1, 6.2, and 6.3 (p. 471):
6.1 Concept of Rights Quality. The concept of recitaling virtue has two primary characteristics: the recitaling axioms should be a unspotted justice of enterprise for the reporting continuance, and the advice should be appropriate to expect expected advenient rights. Cater a favoring sample of unsatisfactory recitaling virtue that would above the expecting of expected advenient rights.
6.2 Equalize Subterfuge Virtue and Rights Quality. You conciliate cater a favoring sample of a skillful-treatment intellect, admire, or exquisite that could wane twain equalize subterfuge and rights virtue. Be favoring as to how the intellect waned virtue in each of the two financial statements. Give a contrariant sample of how a skillful-treatment intellect, admire, or exquisite could extension equalize subterfuge virtue, but hypothetically reduce rights virtue.
6.3 Concept of Rights Management. Define rights skillful-treatment. Discuss why it is intricate to distinguish whether a decided does in truth performance rights skillful-treatment.
2) Chapter 10: Questions and Exercises: 10.7 (p. 830):
10.7 Dividends as a Pliant Financial Account. Schwartz uses dividends as a pliant financial recital. Compute the whole of dividends you can appropriate that Schwartz conciliate pay. Present the incomplete equalize subterfuge.
Statement conciliate be intervening.