when a client notices a discrepancy between annual profits calculated by the accountant versus your economic profit analysis. Use an example to illustrate to the client how a profit measure can differ between a cash-based profit (accounting) versus an economic measure of performance? Which should the client focus on and why?

Q: What are the measurement alternatives involved with using ROA as a performance measure? For example,…

A: The return on asset is the financial ratio that is used by the company in order to analyse how…

Q: Define the phrase “earnings management.” Under what conditions, if any, is earnings management…

A: Payments and receivables are managed in connection to purchases in earnings management. It is done…

Q: What are some of the accounting information costs? What are some advantages of accounting data?…

A: The answer:

Q: A theoretical measure does of income does not exist in the real world in which accountant must…

A: The theoretically correct measure of the income refers to the firm net income which determined on…

Q: Evaluate earnings management from a utilitarian perspective. Can earnings management be an ethical…

A: Earnings management is the purposeful intervention in the external reporting purpose with the intent…

Q: State some of the more serious problems encountered in seeking to achieve the ideal measurement of…

A: Net income: The amount which is computed by summing up all the revenues received during a specific…

Q: Why would managers be willing to make decisions based on estimated revenues and expenses instead of…

A: The estimated revenues are the expected amount of revenues and estimated expenses are also the…

Q: a) Drawing on prior earnings management literature, critically appraise managerial incentives in…

A: Earnings management can be beneficial for a number of reasons. First, corporations may utilize…

Q: What are some of the expenses associated with the provision of accounting data? What are some of the…

A: Will be explained:

Q: What is the importance of forecasting revenue and cost in the business?

A: The forecasting is a tool or technique that helps to forecasting the future revenue with the help of…

Q: profitability ratio

A: Gross profit ratio and net profit ratio are two major profitability ratios.

Q: How would you describe the accounting profit?

A: The answer is about the accounting profit:

Q: What are the differences between EVA and net profit in accounting

A: Introduction : Businesses may assess investment prospects using economic value-added and accounting…

Q: According to the historical cost system, what is the objective of accounting and the role of profit?…

A: Historical cost system believes that the asset needs to be recognised on the basis of cost at the…

Q: Are the financial reports contained in the annual report considered financial accounting reports or…

A: Financial reports are information regarding the financial performance and financial position of a…

Q: Needles talks about the use of a continuum ranging from questionable or highly conservative to fraud…

A: Definition: Earnings: The bottom line of an income statement which is the result of excess earnings…

Q: How is Profit Margin calculated and what does It measure?

A: Note: Since you have asked multiple questions, we will solve the first question. To get the…

Q: Evaluate the following statements from an ethical perspective:“Earnings management in a narrow sense…

A: "Earnings management, in a narrow sense, is the behavior of management to play with the…

Q: When do accountants consider revenue to be realized?What basic question about recording revenue in…

A:

Q: AAA Company signed a contract charging a customer P600,000 to change the windows of a customer's…

A: As per IFRS  Revenue  recognition  standard the transaction  price  should  be allocated  on basis…

Q: What do accountants mean by the term revenue?

A: Revenue is the sum that a corporation earns from selling products and/or supplying its clients and…

Q: Explain the difference between NOPAT and net income. Which is a better measure of the performance of…

A: The net operating profits after taxes (NOPAT) is the operating profits after taxes. It includes all…

Q: Financial accounting is concerned with how and why profits arise. Select one: True False

A:

Q: which manner the manager behave when choosing a particular accounting method to increase the…

A: Earnings management can be defined as the accounting method in order to depict a positive view in…

Q: What are some of the costs of providing accounting information? What are some of the benefits of…

A: Accounting information: A procedure or system that collects information related to money related…

Q: When making judgements lower profits and asset values are estimated rather than higher values. Which…

A: The underlying principles, assumptions, and circumstances that establish the parameters and…