Question 4 Assume there is a large firm operating in the telecommunications sector. For many years now, this firm has reported very large earnings in its income statement, which has not gone un-noticed. In particular, the media has been very quick to criticise the level of the firm's reported earnings. However, in the current year, the firm reports a significantly lower earnings than previous years. Required Referring to your lecture notes, discuss a hypothesis (or an argument) that you are familiar with on the theory of accounting choices that could explain this situation. (5 marks) Question 4 Assume there is a large firm operating in the telecommunications sector. For many years now, this firm has reported very large earnings in its income statement, which has not gone un-noticed. In particular, the media has been very quick to criticise the level of the firm's reported earnings. However, in the current year, the firm reports a significantly lower earnings than previous years. Required Referring to your lecture notes, discuss a hypothesis (or an argument) that you are familiar with on the theory of accounting choices that could explain this situation