studies seem to suggest that management tends to make accounting changes and or manipulate discretionary accruals to
Solved
Show answers
More tips
- H Health and Medicine How to perform artificial respiration?...
- H Health and Medicine 10 Tips for Avoiding Vitamin Deficiency...
- F Food and Cooking How to Properly Cook Buckwheat?...
- F Food and Cooking How Many Grams Are In a Tablespoon?...
- L Leisure and Entertainment Carving: History and Techniques for Creating Vegetable and Fruit Decorations...
- P Photography and Videography How to Choose the Perfect Photo Paper for Your Images?...
- H Health and Medicine What vaccines do children need?...
- H Health and Medicine Reasons for the Appearance of Warts: Everything You Need to Know...
- A Art and Culture How to Learn Screaming: Step-by-Step Guide for Beginners...
- H Health and Medicine Contraceptive Pills After 35: The Importance Of Choosing The Right Medication...
Answers on questions: Business
- B Business On October 1, Goodwell Company rented warehouse space to a tenant for $3,400 per month. The tenant paid five months rent in advance on that date, with the lease beginning immediately....
- B Business One of the primary values of convertible debt is that it is attractive to investors because:. a. their risk of loss is minimized b. they will be repaid for the loan when the company...
- B Business Wally owns 200 acres of land. Wally offers to sell the land to Robert for $1,500 per acre. Robert replies that he does not need 200 acres of land but would like to buy 40 acres at...
- B Business The state of Montana has passed a law that requires all commercial trucks on the roads in the state to have a certain type of side mirrors on their cabs and trailers. The types of...
- B Business Antitrust laws keep businesses from...
- B Biology The highlighted structure plays the major role in ___. a.controlling the shape of the lens b.bending light rays c.controlling the amount of light entering the eye photoreception...
- B Biology Spina bifida and anencephaly are examples of neural tube defects. Women who have had a pregnancy resulting in the birth of an infant with a neural tube defect are being urged to take...
- B Biology Maria analyzed the different types of energy transformations involved in powering a train using coal as fuel as shown in the diagram below. Which of the statement below best describes...
- B Business Wanda is moving to Japan to teach English. Because she will be out of the U.S. for five years, Wanda wants to sell all of her material possessions including a condominium, a car, furniture,...
- P Physics What happens to the air pressure inside a balloon when it is squeezed to half its volume at constant temperature? What happens to the air pressure inside a balloon when it is squeezed...
Ответ:
D. avoid violation of debt covenants.
Explanation:
Going by the Accrual basis of Accounting, expenses that are related to a period must be recorded in that period regardless of if it is paid or not.
Discretionary accruals are those that the company reports subjectively because it is not necessary that these accruals should be accrued.
This allows management to manipulate these as they like and they usually do this to avoid violation of debt covenants which usually place restrictions of some activities of the firm. They therefore use these discretionary accruals to navigate these restrictions.
Ответ:
the first one
Step-by-step explanation: