General Electric has long been known as a company that smoothes its reported earnings. What is it

Question:

General Electric has long been known as a company that smoothes its reported earnings. What is it about General Electric that makes it possible for the company to smooth earnings?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Accounting

ISBN: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

See More Books

Question Posted: Jan 28, 2012 07:01 AM

See More Questions

What is it about direct marketing that makes its growing popularity a threat to the traditional advertising agency?
What is it about service processes that makes their design and operation so different from manufacturing processes?
What is it about passion that makes it particularly compatible with the entrepreneurial process?
You want to short a 6-month forward contract on a stock. You contacted your bank and were offered a forward price of $39.85 [Note: This forward price is available only to customers who want to take a...
When factors A and B are fixed but factor C is random and the restricted model is used (see the footnote on page 438; there is a technical complication with the unrestricted model here), and E(MSE) =...
Nestor Corp., which is not a mere holding or investment company, derives its income from retail sales. Nestor had accumulated earnings and profits of $\$ 145,000$ on December 31, Year 1. For the...
A major department store chain is having a sale on refrigerators. The number of refrigerators sold during this sale at a sample of ten stores was: $\begin{array}{llllllllll}80 & 110 & 0 & 40 & 70 &...
Assume the same information as E14-9 and that Steffi Graf Inc. reports net income in 2008 of $120,000 and in 2009 of $140,000. Total holding gains (including any realized holding gain or loss)...
A Corporation has purchased 1 , 0 0 0 shares of it s own common stock for $ 2 5 per share. The corporation later sells 5 0 0 shares of this treasury stock for $ 2 8 per share. Complete the journal...
Consecutive five-year balance sheets and income statements of Anne Gibson Corporation follow: Required a. Using year-end balance sheet figures, compute the following for the maximum number of years,...
What does the term income smoothing mean?
The Stockholders Equity section of Nilsson Corporations balance sheet as of December 31, 2010, is as follows: Common stock ($5 par, 500,000 shares authorized, 275,000 issued and outstanding) . . . ....
In a review of the Earth II Summit by Derek Osborn of the United Nations Environment and Development UK Committee (UNED-UK) and Tom Bigg also of the UNED-UK, several prominent global figures comment...
Could the current yield exceed the total return?
Define Market Value Added (MVA) and Economic Value Added (EVA).
The authority possessed by an agent that may be reasonably assumed by a third party. a. agent b. agency by necessity c. agency by ratifi cation d. apparent a uthority e. attorney in fact f. express a...
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn. An indorsement of an instrument must be for the entire amount.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn. If an instrument indorsed in blank is lost, the fi nder may not legally negotiate it.
The unemployment rate that exists when GNP is at its potential level is called the natural rate of unemployment. This is the rate consistent with workers changing jobs to find better ones, with...
For all of the following words, if you move the first letter to the end of the word, and then spell the result backwards, you will get the original word: banana dresser grammar potato revive uneven...
In Problem determine the value v of the matrix game. Is the game fair? 7 -9 3 -1
Interest during Construction Grieg Landscaping began construction of a new plant on December 1, 2010. On this date the company purchased a parcel of land for $139,000 in cash. In addition, it paid...
Capitalization of Interest Laserwords Inc. is a book distributor that had been operating in its original facility since 1985. The increase in certification programs and continuing education...
Nonmonetary Exchanges Holyfield Corporation wishes to exchange a machine used in its operations. Holyfield has received the following offers from other companies in the industry. 1. Dorsett Company...
Suppose that the current market price of the bond in Problem 1 is 95. Calculate the resulting redemption yield. A corporate bond with exactly five years left to maturity pays interest at 8% on its...
Why a company with very high net profits can still be in cash flow problems? List and explain three main reasons using examples.
A company exchanged a delivery van with a cost of $150,000 and accumulated depreciation of $50,000 for a new delivery van with a fair market value of $120,000 and $5,000 in cash. What amount of gain...

General Electric has long been known as a company that smoothes its reported earnings. What is it

Question:

Step by Step Answer:

As described in the text of the chapter General Electrics business structure i...View the full answer

Intermediate Accounting

Students also viewed these Accounting questions