a) What is the purpose of internal earnings targets? (b) What is the risk associated with internal earnings targets?

Q: What do the Retained earnings represent?

A: Financial Statement:   They are annual reports of an organization summarizing the financial…

Q: What is financial risk? How is it related to business risk?

A: The financial risk is the risk which is related to the non-payment of the fixed financial charges.…

Q: 3. How do earnings management practices affect the quality of earnings?

A: Earnings quality:   The term earnings quality considers whether the earnings of the company are…

Q: In general, what is the concept of earnings and profit designed to represent?

A: When addressing the bottom line of a company's income statement, the concept of earnings is most…

Q: Why is the distinction between paid-in capital andretained earnings important?

A:

Q: r to pay un

A: Horizontal analysis :  Financial analysts use horizontal analysis, also known as trend analysis or…

Q: Define each of the following terms: g. Repatriation of earnings; political risk

A: Repatriation means the conversion to a single domestic currency of any foreign currency.…

Q: standard setters?

A: Earnings management for contracting causes would be an interest in standard setters because of the…

Q: What is meant by earnings persistence?

A: Earning persistence is one of the attributes of accounting earnings. Basically, it means the…

Q: What are the potential indicators of earnings quality?

A: Some potential indicators of earnings quality are: 1. Unusual or unexpected items included in…

Q: How does earnings management affect earnings quality?

A: Earnings of a company is referred as net income or bottom line item of a company. It is a very…

Q: How does accounting rate of return (ARR) differ from the internal rate ofreturn (IRR)?

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

Q: What is income approach measurement?

A: Step 1 The income approach is a real estate valuation tool that determines fair market value based…

Q: earnings management continuum

A: Earnings management continuum means techniques to manage earnings range across a broad continuum. It…

Q: Explain what is meant by the term earnings quality.

A: The term earnings refer to the amount of money the company had earned during a particular period of…

Q: Explain in detail the difference between accounting value and market value.

A: The objective of this question is to understand the difference between accounting value and market…

Q: Why does Non-GAAP earnings are controversial?

A: Definition: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to…

Q: 2. How do non-GAAP earnings relate to the concept of earnings quality?

A:

Q: Define exposure, differentiating between accounting and economic exposure. What role does inflation…

A: Exposure means uncontrollable future events which can affect adversely. In the mechanism of exchange…

Q: What do you mean by the term "income approach"?

A: The income approach is a real estate valuation technique that is computed by dividing the…

Q: How can earnings management affect the quality of ­earnings?

A: The concept of quality earning shows the amount of earning which is not earned by any default or…

Q: Is the accounting rate of return (ARR) the same thing as the return on investment (ROI)?

A: Yes, Accounting rate of return (ARR) the same thing as the Return on investment (ROI). The…

Q: What are the characteristics of a strong income statement?

A: