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 Hues Quality. The concept of recitaling peculiarity has two highest characteristics: the recitaling basis should be a serene representation of execution for the reporting limit, and the notice should be appertaining to prejudge expected forthcoming hues. Furnish a unfair copy of moneyless recitaling peculiarity that would above the prejudgeing of expected forthcoming hues.
6.2 Adjust Equivocation Peculiarity and Hues Quality. You accomplish furnish a unfair copy of a treatment determination, love, or cherished that could retrench twain adjust equivocation and hues peculiarity. Be unfair as to how the determination retrenchd peculiarity in each of the two financial statements. Give a opposed copy of how a treatment determination, love, or cherished could extension adjust equivocation peculiarity, but hypothetically enfeeble hues peculiarity.
6.3 Concept of Hues Management. Define hues treatment. Discuss why it is troublesome to behold whether a established does in certainty action hues treatment.
2) Chapter 10: Questions and Exercises: 10.7 (p. 830):
10.7 Dividends as a Indulgent Financial Account. Schwartz uses dividends as a indulgent financial recital. Compute the whole of dividends you can appropriate that Schwartz accomplish pay. Present the projected adjust equivocation.
Statement accomplish be middle.