Managing Earnings Companies often try to keep accounting earnings growing at a relatively...

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Managing Earnings Companies often try to keep accounting earnings growing at a relatively steady pace in an effort to avoid large swings in earnings from period to period. They also try to manage...

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Managing Earnings

Companies often try to keep accounting earnings growing at a relatively steady pace in an effort to avoid large swings in earnings from period to period. They also try to manage earnings targets. Reflect on these practices and discuss the following in your discussion post.

Are these practices ethical?
What are two tactics that a financial manager can use to manage earnings?
What are the implications for cash flow and shareholder wealth?
Using the financial balance sheet as displayed in the text, provide an example of how purchasing an asset or issuing stocks or bonds could potentially impact earnings targets.

Your post should be XXXXXXXXXXwords in length.

Answered Same Day Jul 07, 2021

Shakeel · Accepted Answer

Managing earnings is an important task of business. but it should be according to accounting norms. Generally, unethical practices are ca
ied on to make the profit figure look better in an accounting period or to make the profit consistent from period to period by manipulating accounting rules and norms. Therefore, manager should know the co
ect way or managing earnings. According to Me
itt C (2018), the simplest way of managing earnings is the date on which revenues and expenses are recorded in the book of...

Managing Earnings Companies often try to keep accounting earnings growing at a relatively steady pace in an effort to avoid large swings in earnings from period to period. They also try to manage...

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