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Why do companies find it convenient to alter allowance for bad debts to manage earnings? GAAP prescribes a range of allowances for bad debts for
Why do companies find it convenient to alter allowance for bad debts to manage earnings?
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| GAAP prescribes a range of allowances for bad debts for each industry and management can choose any number within that range. |
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| Bad debt allowance is an estimate and can be justified based on management's discretion or opinion under GAAP. |
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| It is one of the options that offers the greatest benefit to a company. |
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| The Sarbanes-Oxley Act has closed off all other loopholes used to manage earnings. |
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How To Win Your Tax Audit An Insider Guide To Successfully Negotiating With The IRS Chronicled From The Files From The Files Of The Nations Most Successful And Respected Taxpayers Rights Advocate
Authors: Daniel J Pilla
1st Edition
1884367097, 978-1884367090
