Compare and contrast Accrual Earnings Management and Real Earnings Management. Real Earnings Management: a. Real activities manipulation: managers try to mislead at least some of their stakeholders to believe that the financial reporting goals have been met through normal operational practices. However‚ this is not a value added activity‚ sometimes may even reduce firm value because current actions will have negative effect on future cash flow. b. It is probable that real earnings management will
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Apollo Revenue Cycle Flowchart Flow Chart 1. Sales order documents are not prenumbered‚ and kept in a busy sales clerk area. 2. Customer order is attached if one was received. 3. Sales invoice are pernumbered‚ and kept in a locked closet; removed only for billing clerk use 4. Bills of lading are pernumbered and kept in the shipping department. 5. Sales order forms are not prenumbered and kept in the salesclerks working area‚ many people pass through. 6. Credit manager is
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Identify the strengths and weaknesses of discretionary accruals models to identify earnings manipulation: Discretionary Accrual = non-obligatory expense (such as an anticipated bonus for management) that is yet to be realized but is recorded in the account books. Accrual Accounting = an accounting measure that measures the performance and position of a company by recognizing economic events regardless of when cash transactions occur. The general idea is that economic events are recognized
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ISE105: Computer Fundamentals Lecture 7 Samin Khaliq Today’s Lecture • Programming Languages • History of C • Problem Solving – Flowcharts – Algorithms – Programs • C Program • Comments Types of Programming Languages Low Level Languages 1. Machine language (1GL) • • Strings of numbers giving machine specific instructions Example: Calculates nth Fibonacci number 8B542408 FA027706 B9010000 C84AEBF1 83FA0077 06B80000 0000C383 B8010000 00C353BB 01000000 008D0419 83FA0376 078BD98B
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THE ACCOUNTING REVIEW Vol. 83‚ No. 3 2008 pp. 757–787 Real and Accrual-Based Earnings Management in the Pre- and Post-Sarbanes-Oxley Periods Daniel A. Cohen New York University Aiyesha Dey University of Chicago Thomas Z. Lys Northwestern University ABSTRACT: We document that accrual-based earnings management increased steadily from 1987 until the passage of the Sarbanes-Oxley Act (SOX) in 2002‚ followed by a significant decline after the passage of SOX. Conversely‚ the level of real earnings
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Message displayed after profit calculated Type String String Value “Enter the wholesale price.” “Enter the retail price.” Numeric String “Thanks for using this program.” Hierarchy chart: main program housekeeping() Flowchart: detail() endOfJob() Pseudocode: start Declarations num wholesalePrice num retailPrice num profit string WHOLE_PROMPT = “Enter the wholesale price” string RETAIL_PROMPT = “Enter the retail price” string END_LINE = “Thanks for using
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Discuss the issues surrounding accounting treatment for assets and liabilities under the accrual accounting for the government of Malaysia. There are a lot of issues relating accounting treatment for assets and liabilities under accrual accounting for the government of Malaysia. This essay will separate the issues regarding assets and liabilities in different paragraphs. Issues relating accounting treatment of assets One of the issue is that there are several assets that does not exist in private
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Information System is an integral part of the new design of Kudler’s computer system. Accountants do not necessarily need to understand completely how computers process data of the accounting application‚ but it is essential for them to understand the flowcharts and documentation that shows how this processing works. The purpose of the new system is to integrate the four Kudler locations. Centralizing the accounting system will save Kudler money by automating accounting‚ inventory‚ human resources‚ and
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Estimation of sales commission expense by multiplying net revenue by average commission rate and comparison of recorded sales commission expense. The potential misstatement is that the under-or overstatement of sales commission expense and related accrual. 3) Comparison of gross profit percentage by product line with previous years and industry data. The possible misstatement detected would be unrecorded (understated) revenue. 4) Analysis of the ratio of sales in the last month or week to total
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employment to 35 million people in India. 3. Raw Material: The main raw material for the spinning process is Ginned cotton will be available in Bales of 170 Kgs/bale. 2 4. Manufacturing Process& Technology Spinning process is shown in the flowchart given below. Cotton which is in the form bales is fed to blow room followed by various operations like carding and combing depends on the
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