What are some possible ways that corporate accountants might be able to change their earnings to portray a more favorable earnings statement?  The SEC is trying to get companies to notify the investment community more quickly when a "material change" will affect their forthcoming financial results. In what sense might a financial manager be seen as "more ethical" if he or she follows this directive and issues a press release indicating that sales will not be as high as previously anticipate? How can a manager influence the budgeting process and ensuing budgetary numbers in unethical ways? Are there ways to identify and control this type of behavior

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Possible Ways Corporate Accountants Might Change Earnings 1 Revenue Recognition Accelerating the recognition of revenue before its earned or deferring expenses to a later period 2 Expense Capitalizati... View the full answer