Managing EarningsCompanies often try to keep accounting earnings growing at a relatively steady pace in an effort to avoid large swings in earnings from period to period. They also try to manage earnings targets. Reflect on these practices and discuss the following in your discussion post. Are these practices ethical? What are two tactics that a financial manager can use to manage earnings? What are the implications for cash flow and shareholder wealth? Using the financial balance sheet as displayed in the text, provide an example of how purchasing an asset or issuing stocks or bonds could potentially impact earnings targets.Your post should be 200-250 words in length.

Managing Earnings Companies often try to keep accounting earnings growing at a relatively steady pace in an effort to avoid large swings in earnings from period to period. They also try to manage...

Managing Earnings

Companies often try to keep accounting earnings growing at a relatively steady pace in an effort to avoid large swings in earnings from period to period. They also try to manage earnings targets. Reflect on these practices and discuss the following in your discussion post.

Are these practices ethical?

What are two tactics that a financial manager can use to manage earnings?

What are the implications for cash flow and shareholder wealth?

Using the financial balance sheet as displayed in the text, provide an example of how purchasing an asset or issuing stocks or bonds could potentially impact earnings targets.

Your post should be 200-250 words in length.

Answered Same DayJul 07, 2021

Answer To: Managing Earnings Companies often try to keep accounting earnings growing at a relatively steady...

Shakeel answered on Jul 09 2021

158 Votes

Managing earnings is an important task of business. but it should be according to accounting norms. Generally, unethical practices are carried on to make the profit figure look better in an accounting period or to make the profit consistent from period to period by manipulating accounting rules and norms. Therefore, manager should know the correct way or managing earnings. According to Merritt C (2018), the simplest way of managing earnings is the date on which revenues and expenses are recorded in the book of...

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Managing Earnings Companies often try to keep accounting earnings growing at a relatively steady pace in an effort to avoid large swings in earnings from period to period. They also try to manage...

Answer To: Managing Earnings Companies often try to keep accounting earnings growing at a relatively steady...

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