FINANCE ACCOUNTING/ quality of earnings

AC1420: Week 6 Quality of Earnings

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Explain the terms “quality of earnings” and discuss how management can influence

earnings legally. Explain three common ways to manipulate a company’s earnings. In

addition, state how you can identify such manipulations when analyzing a company’s

financial statements.

Submission Requirements:

Submit your answers in a Microsoft (MS) Word file.

Font: Arial, 12 point, double-spaced

Evaluation Criteria:

Criteria Points Assigned Points Earned

Did you define the term “quality of

earnings” and discuss ways to

influence earnings?

40%

Did you explain three common

ways to manipulate earnings?

30%

Did you state how to identify such

manipulations?

30%