earnings management continuum

Q: What do the Retained earnings represent?

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

Q: Define price earnings ratio.

A: P/E Ratio: Price Earnings ratio is the ratio of company’s current share price to the company’s…

Q: difference between Gross Earnings and Net Earnings

A: Gross earnings and Net earnings are two terms used in financial accounting while computation of the…

Q: Define the term Temporary earnings.

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

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: Discuss the components of operating and nonoperating income and theirrelationship to earnings…

A: Meaning of Operating Income Operating Income is also known as Earnings before interest and taxes. It…

Q: Define the term s price-earnings ratio?

A: Financial Ratios: Financial ratio analysis expresses the relationships between different items…

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

A: ‘’Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What is net income, comprehensive income, and retained earnings balance?

A: According to the question given, we need to compute the net income, comprehensive income, and,…

Q: What does price/earnings ratio tell you?

A: Price-to-Earnings Ratio shows relation between entity’s stock price relative to earnings made on…

Q: Why must a cost be assigned to retained earnings?

A: Likewise, debt and equity financing, retained earnings has also some cost. The predictor care about…

Q: What is the Price Earnings Ratio?

A: The price-earnings ratio is the ratio which helps the investor to determine the market value on the…

Q: explain mean reversion in earnings and how the accruals component of earnings aff ects thespeed of…

A: Earnings mean reversion means earnings of the company come to a normal level if the earnings for…

Q: What is meant by earnings persistence?

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

Q: Discuss some financial variables that affect the price-earnings ratio?

A: The price-Earning Ratio refers to the ratio between earning per share and the current market price…

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: Define earnings quality.

A: Earnings quality refers to the ability of total income by predicting future earnings of the company.

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: What is income approach measurement?

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

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

A:

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: Define the term permanent earnings.

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

Q: What does the price-earnings ratio measure?

A: Formula Price earning ratio = Market Price per shareEarnings per share

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: What does the price-to-earnings ratio (P/E) tell you?

A: Ratio analysis is a process under which we evaluate the performances of company and its competitor…