Question
Often, short-term operating results can be improved at the expense of long-term growth. For example, reducing expenditures for developing new products may increase earnings and
Often, short-term operating results can be improved at the expense of long-term growth.
For example, reducing expenditures for developing new products may increase earnings and net cash flows in the current period.
Over time, this strategy may lessen the companys competitiveness and long-term profitability.
Academic research investigates this as real earnings management (REM where we manager earnings upward via real economic changes to our business)
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Do you think that managing earnings this way is a smart choice for a CEO or CFO?
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Is this a smart choice for the business?
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Should these answers be the same?
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Name one transaction type you think is REM
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Managerial Accounting A Focus On Ethical Decision Making
Authors: Jackson
5th Edition
B00651UGQG
