Abstract A quality of earning assessment is a tool used by analyst to determine the correlation between accounting income and economic income. The techniques to analyze accounting income and economic income include: comparing accounting principles‚ reviewing changes in accounting principles‚ analyzing discretionary and warranty expenditures‚ understanding replacement cost of assets and managements and auditors opinion of the company. A quality of earnings assessment of PepsiCo is applied to
Premium Generally Accepted Accounting Principles Revenue Balance sheet
1. What is earnings management? The companies use earnings management as a strategy by which they can easily control and manipulate their earnings to reach their pre-determined earning target. 2. Why do companies employ earnings management techniques? Accountants cannot predict every business structure‚ every new and innovative transaction. Therefore‚ they build up principles that allow for flexibility so that they can adapt to changing circumstances. However‚ people make use of that flexibility
Premium Generally Accepted Accounting Principles Financial statements Enron
Earnings Management and Its Implications Educating the Accounting Profession By Michael D. Akers‚ Don E. Giacomino‚ and Jodi L. Bellovary August 2007 Issue AUGUST 2007 - In the wake of continuing‚ highly publicized E-mail Story financial frauds and failures‚ the accounting profession has placed renewed emphasis on issues related to earnings Print Story management and earnings quality. The SEC and the public are demanding greater assurance about the quality of earnings. Staff Accounting Bulletin
Premium Business ethics Financial statements Balance sheet
Morality is the intentions‚ decisions and actions between a good choice and a bad choice. Morality is the concerns beliefs according to good and bad behavior. Morality is something every single person has weather they are a good person of character or a bad person of character. According to philosophy ethics is morality. Ethics is a moral code the study of morality using tools and methods of philosophy. A moral is what you are taught and practiced. Some of the things we are taught and practice are
Premium Ethics Morality
MORALITY THALINE JACQUET March 16‚ 2014 PHIL. 201 PROF. CHRITINA FUSCH AIU ONLINE Morality is an important concept that has always generated interest when dealing with business organizations. Some of the business organizations argue that morality in business is important as it ensures that the needs of the customers are fully satisfied. However‚ with the increased focus on profitability‚ morality the concepts of morality is no longer considered in most organizations. According
Premium Morality Ethics
Morality is the reference to codes of conduct that are brought forward by a society. It is evident in the play Macbeth that making moral decisions is superior to making immoral choices. In the end of the play the result of the characters moral and immoral choices all comes to fruition. Consequently the actions of those who acted morally dealt with their situation much better than those who did not. Morality is the reference to codes of conduct that are brought forward by a society. It is evident
Premium Morality Macbeth Ethics
Kelsey Berry Hartung Humanities 10/23/12 What is Morality? The inevitable fore comings of being a child literally flash right before your eyes. One minute you are learning how to walk and talk and in the next you are graduating high school. We find ourselves constantly wondering where the hell all that time went. And in between all this growing up it seems we acquire a set of “morals” and “values”; merely things we tend to blame our actions and thoughts on. It’s like this illusory line
Free Mind Thought Human
Price/Earnings Ratio Model (P/E) The P/E looks at the relationship between the stock price and the company’s earnings. The P/E is the most popular metric of stock analysis. A valuation ratio of a company’s current share price compared to its per-share earnings. For example‚ if a company is currently trading at $60 a share and earnings over the last 12 months were $2 per share‚ the P/E ratio for the stock would be 30 ($60/$2). The earnings multiplier can be computed as follows: P/E Ratio = Current
Premium P/E ratio Dividend yield Financial ratio
Earnings management is typically regarded as a bad thing. I will cover why it’s considered a bad thing‚ and what it entails. When an executive “cooks the books” it’s referring to them providing false information in order to deceive other important employees or shareholders. This act includes‚ but is not limited to: falsifying receipts‚ inventories‚ balance sheets‚ and/or cash flow statements. This is an important concept to familiarize yourself with because‚ if identified and stopped in time‚ could
Premium Accounting scandals Arthur Andersen Enron
a. There are three ways of managing reported earnings and the reasons behind each way may be different. (1) Report lower earnings. Managers intend to report lower earnings for mainly three reasons. Firstly‚ they want to hide profit for future use. In some years‚ the company presents a strong performance and has earned huge profit; however the manager may worry that the company’s future performance would not be as strong as current year‚ which gives them the incentive to save the profit by reporting
Premium Audit Auditing