Give an example of how to boost reported quarterly earnings by using accruals, and describe the implications for reported earnings in the next quarter. What is the risk involved in using accruals to boost earnings?
Answer to relevant QuestionsIf a company’s value is not driven by its short-term earnings, why do investors spend so much time analyzing a company’s annual or even quarterly earnings announcements? In the past, a fast-growing mobile telecommunications company has always capitalized its customer acquisition costs. For the next few years, management expects growth in its customer base to slow significantly, probably ...Discuss the pros and cons of introducing regulatory restrictions on short selling in an equity market. Do you think it is possible for a company to shape its shareholder base to maximize its share price? What would a company have to do? What are the benefits to society when a business is owned by its best owner?
Post your question