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What are some common economic consequences of financial reporting on the reporting firm? Multiple select question. Certain financial statement performance metrics may affect the ability
What are some common economic consequences of financial reporting on the reporting firm? Multiple select question. Certain financial statement performance metrics may affect the ability of a firm to raise capital in debt or equity markets. Managerial compensation may depend on reported net income. Failure to maintain certain financial statement ratios may cause a firm to violate debt covenants. Increases in a firm's net income will always result in an increase in the market value of its equity shares
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