Accounting 1. Which of the following are possible motives for managers to manipulate their earnings lower (I.e., make reported earnings less than unmanaged earnings)?(check all that apply)     Unmanaged earnings would fall below security analysts’ forecasts of earnings   Government is investigating potential monopolistic practices by the company because of its high levels of profitability   A potential competitor is deciding whether to introduce new products to compete with the company’s product line and will do so only if it thinks the company is making huge profits   The company is close to violating a debt covenant on its public bond issue because of low earnings   Congress is planning a vote on extending tax credits to company’s industry due to its poor recent performance

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Accounting

1. Which of the following are possible motives for managers to manipulate their earnings lower (I.e., make reported earnings less than unmanaged earnings)?(check all that apply)

 

 

Unmanaged earnings would fall below security analysts’ forecasts of earnings

 

Government is investigating potential monopolistic practices by the company because of its high levels of profitability

 

A potential competitor is deciding whether to introduce new products to compete with the company’s product line and will do so only if it thinks the company is making huge profits

 

The company is close to violating a debt covenant on its public bond issue because of low earnings

 

Congress is planning a vote on extending tax credits to company’s industry due to its poor recent performance

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