Explain the meaning of the following two statements and why each may be true: a. Where management
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a. Where management does not try to manipulate earnings, there is a positive effect on earnings quality.
b. The absence of earnings management does not, however, guarantee high earnings quality.
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a When management does not try to manipulate earnings then the earnings are reliable assuming it has been properly recorded in conformity with GAAP and earnings quality is high However even though man...View the full answer
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Related Book For
Ethical Obligations and Decision Making in Accounting Text and Cases
ISBN: 978-1259730191
4th edition
Authors: Steven Mintz, Roselyn Morris
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