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Consider the following items. a. Is each item Real or Accrual Earnings Management? b. According to the Standards of Ethical Behavior for Practitioners of Management
Consider the following items. a. Is each item Real or Accrual Earnings Management? b. According to the Standards of Ethical Behavior for Practitioners of Management Accounting and Financial Management" (Exhibit 7 on page 18), is each item acceptable? If not, what practitioner responsibility is being violated? Real or Accrual2 Item Acceptable? Principle? revenue (cash received in advance for pocket sand" that will be delivered in the future) as reverue when cash is received in the current month Gust before fiscal year end) instead of showing it as a liability Record executive year end bonus for the current yeari n the 2 next year when it is paid after the January fiscal year end. Make deep cuts in pricing through the generate additional 3end of the year to generate revenue Cancelling two of the division's least 4profitable lightsabers, resulting in the layoff of 100 stoutroopers
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