Accounting Research Vol. 49 No. 3 June 2011 Printed in U.S.A. Earnings Quality Based on Corporate Investment Decisions FENG LI∗ Received 25 July 2007; accepted 20 September 2010 ABSTRACT In this paper‚ I examine a new approach for measuring earnings quality‚ defined as the closeness of reported earnings to “permanent earnings‚” based on firm decisions with regard to capital and labor investments. Specifically‚ I measure earnings quality as the contemporaneous association between changes in
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most commonly discussed issues in economics is how tax rates relate to economic growth. Advocates of tax cuts claim that a reduction in the tax rate will lead to increased economic growth and prosperity. Others claim that if we reduce taxes‚ almost all of the benefits will go to the rich‚ as those are the ones who pay the most taxes. Specially‚ we truly care about how tax rates can lead to the changes in labor supply and aggregate demand (AD). What does economic theory suggest about the relationship
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Bottemiller Allison Pinkerton English Composition 1 28 August‚ 2013 Literacy Sponsors As a child‚ I was constantly held in high regard. Whether it was my parents gloating about my intellect‚ or how I was a “smart ass” at a young age. I was shaped by my parents; they always pushed me to strive to be ahead. My literary background was formed by my parents positively influencing my development through their own actions and guidance‚ my peers‚ and my own interest. My mother always gave me books and this influenced
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B 5. Earning revenue a.|increases assets‚ increases stockholders’ equity.| b.|increases assets‚ decreases stockholders’ equity| c.|increases one asset‚ decreases another asset| d.|decreases assets‚ increases liabilities| a 6. At of the end of its accounting period‚ December 31‚ 2009‚ Great Marks Company has assets of $940‚000 and liabilities of $300‚000. During 2010‚ Great Marks sold $65‚000 of capital stock and declared and paid $45‚000 in dividends. What is the amount of net income during
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Role of the IRS in interpreting and providing guidance on the tax law The role of the IRS in interpreting and providing guidance on the Tax Law is to help taxpayers to understand and comply with the tax law and ensure that those who does not comply pay their fair share of the penalty. The IRS has to apply the tax law with integrity and fairness to all. Types of tax law guidance are published by the IRS The authoritative instrument of the IRS for announcing official rulings (Revenue Rulings and
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The Main Issue: Earnings Management 1.1 Definition of Earnings Management A commonly acknowledged definition of earning management by Healy and Wahlen (1999) demonstrates that managers implement personal judgement in financial reporting and transactions to manipulate financial reports for misleading some investors about a company’s financial performance or influencing contractual outcomes that reply on the numbers. Based on several researches‚ Lawrence (2009) concludes that earnings management
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GUIDANCE WORK WITH INDIVIDUALS Career planning is a process which helps someone to make a well informed realistic decision (WIRD) about a career. It is a step by step process to help make a transition and can help to measure the progress made (route map) by first establishing which way is forward. Step One: Engagement / Motivation. The first step is the most crucial one. There could be a number of reasons why someone is not engaging‚ such as fear or attitude. A person first of all needs
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HUB HUB RESEARCH PAPER Earnings management: a literature review S. Verbruggen‚ J. Christaens‚ and K. Milis HUB RESEARCH PAPER 2008/14. FEBRUARI 2008 Hogeschool – Universiteit Brussel Stormstraat 2‚ 1000 Brussel‚ Belgium T: +32 2 210 12 11 F: + 32 2 217 64 64 Earnings management: a literature review S. Verbruggen‚ Hogeschool Universiteit Brussel Prof dr. J. Christaens‚ Universiteit Gent Prof. dr. K. Milis‚ Hogeschool Universiteit Brussel Abstract Based on a literature review of major
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lecture‚ you should be able to: understand the ordinary concepts of income; | | THE ORDINARY CONCEPTS OF INCOME What is Income? The assessable income of an entity for a year of income includes the ordinary income of an entity and the statutory income of the entity for that year (Section 6-1 ITAA (1997)). Ordinary income is income according to ordinary concepts. The courts have had to determine what is income according to ordinary concepts as there is no definition in the
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Big Brother Is Proposing Taxing Yet Again My first impression of the term "Fat Taxes" was and instant "Yes‚ let’s do it"‚ I jumped to conclusions before reading through the material. However once I read the different arguments and rebuttals‚ I quickly went from for to against this “Fat Tax” for many reasons. The fat tax is designed to tax unhealthy food and sugary drink to encourage healthier eating habits in hopes of decreasing obesity. Yes‚ obesity creates a great deal of the health problems in
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