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How can the allowance for doubtful accounts be used to assess earnings quality?
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What is meant by quality of earnings?
In recent years, I've read earnings announcements from companies and I've come to doubt the transparency of even the veracity of what I've been reading. After digging into the financial statements, I've found what I consider some dubious earnings reporting. Financial analysts are increasingly concerned about earnings reporting and have reached certain conclusions.* The measure of quality is the degree to which earnings are generated from internally developed initiatives, as opposed to external forces.* If a company has increased earnings year over year from improved cost efficiencies or sales generated from a marketing campaign, that company has a high quality of earnings.* If a company's earnings are attributed to outside sources such increasing commodity prices, this is seen as low quality of earnings.* It has also come to mean the degree to which management's choices of accounting estimates can affect reported income.* Some analysts question whether some firms engage in "earnings management."
What is the Impact of behavioral Sciences on financial accounting?
The term behavioural sciences is a discipline that explores the activities of and interactions among organisms in the natural world. It involves the systematic analysis and investigation of human and animal behaviour through controlled and naturalistic observation, and disciplined scientific experimentation.Behavioural sciences includes two broad categories: neural-decision sciences-and social-communication sciences. Decision sciences involves those disciplines primarily dealing with the decision processes and individual functioning used in the survival of organisms in a social environment. These include anthropology, psychology, cognitive science, organisation theory, psychobiology, and social neuroscience.On the other hand, communication sciences include those fields which study the communication strategies used by organisms and its dynamics between organisms in an environment. These include fields like anthropology, organisational behaviour, organisation studies, sociology and social networks.Impact of behavioural science on AccountingIt is concerned with testing the effects of human psychological behaviour on strategic planning, budgeting, control, financial reporting, and decision-making in organisations. For example, a budget (and hence control and performance evaluation systems) has behavioural implications on everyone in an organisation: those who participate in preparing it, those who use it to assist in the decision-making process, and those who are evaluated using the budget. In addition, the quality of corporate financial reporting, particularly the quality of publicly reported earnings numbers, is influenced by the behaviour of managers who intentionally try to manipulate earnings for their own benefits, and in order to influences investors' psychological behaviours, which can also be affected by analysts' self-interests. Auditor's independence can also be weakened by auditors' self-interests and over-confidence, and so as managers.The aim of this special issue is to publish high quality, innovative theoretical and empirical papers that promote the understanding of behavioural corporate accounting, in order to provide a platform for future research agenda.Subject CoverageThe issue welcomes theoretical or empirical papers that explore managers, auditors, and regulators regarding corporate earnings quality. Topics include, but are not limited to:The effects of human behaviour and psychology on the quality of corporate financial reportingThe effects of human behaviour and psychology on internal decision-making, internal control, performance evaluation, customer satisfaction, total quality management, and companies' performanceThe effects of human behaviour and psychology on investment decision-makingThe behaviour implications of budgetThe behavioural implications of activity-based costingAudit quality and over-confidenceInternal control system and earnings qualityRestructuring costs and earnings qualityCorporate governance and earnings qualityMerger and acquisition and earnings qualitySarbanes-Oxley Act and earnings managementThe effects of Sarbanes-Oxley Act on the decision of managers to cross-list in the USAnalysts' earnings forecasts and earnings management/qualityAudit quality/auditor's independence and earnings managementThe effect of IFRS introduction on earnings management of EU companiesThe market reaction to the introduction of IFRS in EuropeInternational cross-listing and corporate disclosureThe quality of the internet corporate reporting, and investors' reaction to it
Which company offers the cheapest merchant account?
If you compare most of the merchant accounts online you will find that there are a lot of differences in price but also in quality of the service. The cheapest of them all seems to be NAB though.
What is a debtors' allowance journal?
Debtors may sometimes be unhappy with their purchases and wish to claim a refund (allowance) from the supplier. Some reasons for this include poor quality goods, wrong colour, wrong size, overcharges, errors on the invoice, and so forth. The debtor then sends a debit note (D/N) to the trader in which the claim is made in respect of the goods returned or overcharge claimed . After investigation the supplier, if in agreement with the claim, issues a credit note (C/N) to the customer. One copy is sent to the debtor and the other is the source document for the entry in the business's Debtors Allowances Journal (DAJ) The DAJ is like a sales returns and overcharges journal.
What is Receipt Routing?
Receipt routing is a process by which the receipt is processed and sent to Accounts Payables for payment to vendor or supplier 3 options are available for processing the receipts in oracle 1. Direct 2. Standard 3.Inspection required Direct : Delivers directly to stores Standard : Standard process of receipts Inspection Required : Raw Material is checked for Quality parameters (as per the quality plan) then accepted or rejected and sent to stores.
What word starts with que and means of doubtful quality?
questionable quality
What is meant by quality of earnings?
In recent years, I've read earnings announcements from companies and I've come to doubt the transparency of even the veracity of what I've been reading. After digging into the financial statements, I've found what I consider some dubious earnings reporting. Financial analysts are increasingly concerned about earnings reporting and have reached certain conclusions.* The measure of quality is the degree to which earnings are generated from internally developed initiatives, as opposed to external forces.* If a company has increased earnings year over year from improved cost efficiencies or sales generated from a marketing campaign, that company has a high quality of earnings.* If a company's earnings are attributed to outside sources such increasing commodity prices, this is seen as low quality of earnings.* It has also come to mean the degree to which management's choices of accounting estimates can affect reported income.* Some analysts question whether some firms engage in "earnings management."
What are 2 factors that can affect earnings for an computer tech?
rate of input and quality of output
What factors associated with earnings quality?
The key question is "Is this real sustainable earnings?" (high quality) or is it earnings due to some accounting quirk or one-time event which would not be expected to continue in future periods? Is it even honest reporting or were the books adjusted to make management look good and achieve desired bonuses?
What factors might influence a firm's price-earnings ratio?
The price earnings ratio is influenced by: -the earnings and sales growth of the firms -risk -debt-equity structure of the firm -dividend policy -quality of management -a number of other factors
Why dogs urine is cloudy?
Inactivity, length of time between allowance of urination, and food quality as well as water quality all are contributing factors.
What is camel in terms in bank management?
C- capital adequacy A- asset quality M- management quality E- earnings quality L- liquidity S- sensitive to market risk
Two factors that could affect earnings for a florist?
Late delivery and low quality affects the earning for a florist
In the real world of brand recognition and popularity accounts for the fact that mediocre products and services often trump quality.?
In the real world of brand recognition and popularity, _______ accounts for the fact that mediocre products and services often trump quality.
Why are there so few Quaker followers?
Because they don't believe that numbers accounts for the truth. They're in quality of belief, not quantity.
How much money does a perfume chemist make?
The earnings of a perfume chemist depends on several factors. These factors include the quality of the products as well as the quantity of perfume the chemist can make regularly.
What are some financial variables that affect the price-earning ratio?
the price-earnings ratio ( or P/E, as its is commonly called ) is influenced by : 1- the earnings and the sales growth of the firm. 2- the risk ( or volatility in performance ) 3- the debt equity structure of the firm. 4- the dividend payment policy. 5- the quality of management.
