Which of the following parties influence whether a firm recognizes a goodwill impairment

A. Managers

B. Analysts

C. Auditors

D. All of the above

E. Managers and Auditors

Question 2:

Managers only have incentives to manage earnings upwards (not downwards).

True

False

Question 3:

Operational earnings management hurts the company because it involves making a choice about undertaking (or not undertaking) a transaction based on financial reporting considerations, that management would not otherwise choose (i.e., it's economically not the correct decision).

True

False

Question 4:

If a manager writes down equipment (within PP&E) too much (to a value lower than its actual value), which of the following will occur, holding all else equal?

A. Future revenues will be higher

B. Future earnings will be higher

C. Future expenses will be larger

D. Future cash will be higher

E. None of the above

Answer rating: 100% (QA)

Answer D All of the above Because all three of them recognize the goodwill impairment as auditor its ... View the full answer