Explain earnings management
Problem: Explain earnings management. How is earnings management distinguished from fraudulent reporting?
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1. What are the sources of the company's sales? How much was derived from iPhone and iPad sales, for example?
What temptations might managers face if they have provided earnings guidance to investors and later find it difficult to meet the expectations that they helped create? Explain.
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Question 1: Why do firms choose to make large increases in their dividends or start a stock repurchase program? Why would they choose one of these payout methods over another?
What benefits might a corporation reap if they consider non-financial actions as part of their decision making?
What did the engineer mean about the large overhead rate being a disadvantage when placing bids and seeking new business?
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