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We have discussed the fact that managers have some discretion in making accounting-related decisions. Due to the COVID-19 situation, companies likely will have lower earnings
We have discussed the fact that managers have some discretion in making accounting-related decisions. Due to the COVID-19 situation, companies likely will have lower earnings in 2020 than in 2019. Assume that for 2020, a company wants to do what it can so that its financial statements look as good to investors as they did in 2019. Discuss AND give explanations on EACH of the judgmental decisions the company might make with respect to: Accounting for accounts receivable/allowance for doubtful accounts Accounting for acquisitions of property, plant and equipment Accounting for depreciation Repurchasing shares of stock (aka purchasing treasury stock) NEED EXPLANATIONS ON EACH
We have discussed the fact that managers have some discretion in making accounting-related decisions. Due to the COVID-19 situation, companies likely will have lower earnings in 2020 than in 2019. Assume that for 2020, a company wants to do what it can so that its financial statements look as good to investors as they did in 2019. Discuss AND give explanations on EACH of the judgmental decisions the company might make with respect to:
Accounting for accounts receivable/allowance for doubtful accounts
Accounting for acquisitions of property, plant and equipment
Accounting for depreciation
Repurchasing shares of stock (aka purchasing treasury stock)
NEED EXPLANATIONS ON EACH
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