For Each of the Following Factors,determine If the Given Change $\text {\underline{More likely/ less likely } }$

question 2

Essay

For each of the following factors,determine if the given change or level of that factor would lead an analyst to believe that managers of a firm are more or less likely to engage in earnings manipulation:
                                                                     Earnings Manipulation
                                                                     $\text {\underline{More likely/ less likely } }$
1. Days Sales in Receivable Index increases
2. Gross Margin Index decreases below 1
3. As5et Quality Index increases
4. Depreciation Index decreases to below 1
5. Leverage Index increases

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Definitions:

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