Give Some Examples of How a Merchandising Company Can Manipulate

question 147

Essay

Give some examples of how a merchandising company can manipulate earnings through its year-end inventories. What can an auditor do to detect this type of manipulation?

Identify the impact of net present value of future growth opportunities (NPVGO) on share price adjustments.

Comprehend the relationship between earnings per share, risk-adjusted cost of equity, and share price determination.

Recognize the primary objective of financial reporting according to FASB and its implications for investors and creditors.

Understand how accrual accounting impacts the presentation of financial information and its relation to cash flows and earnings.