Question: Financial statements analysts must ensure that their forecasts are objective, realistic, and unbiased. Some companies executives and managers can be too optimistic about their companies

Financial statements analysts must ensure that their forecasts are objective, realistic, and unbiased. Some companies executives and managers can be too optimistic about their companies outlook. Some accounting principles tend to be conservative. Express how these different risks and incentives can lead financial analysts, executives and managers, and accountants to different biases when predicting uncertain outcomes.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!