Question

Explain how each of the following would affect the quality of an entity's earnings:
a. Management decides to increase advertising in the current period as part of a special event. Management expects the increase to occur only in the current year and spending levels to return to historical levels in the future.
b. Management increases the estimated useful life of some of the entity's capital assets.
c. Management decides to write down certain capital assets to reflect changes in market conditions.



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  • CreatedFebruary 26, 2015
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