unit 5 discusion - Earnings Management versus Managing...

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Earnings Management versus Managing Earnings 'Earnings management' or 'income smoothing' is a widely accepted practice in corporate accounting. This is the practice of advancing or delaying accruals to 'smooth out' net income. If income is not smoothed, earnings will bounce around, causing this company to be perceived in capital markets as risky. Basic finance theory states that the higher the risk the higher the return investors will demand. So if companies don't 'smooth income' their capital costs will increase. This is an accepted practice. Should it be? Respond
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Collapse All Show Options Responses Author Jorge Martinez 11 Nov 10 4:31 PM MST Christina Myers 12 Nov 10 2:56 AM MST Demetrica Jefferis 12 Nov 10 4:48 PM MST Melanie Hicks 12 Nov 10 7:04 PM MST
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Sara Santos 12 Nov 10 7:30 PM MST Shandrette Simpson 12 Nov 10 11:50 PM MST Kimberley Giordano 14 Nov 10 8:11 AM MST Rebecca Forman 14 Nov 10 5:48 PM MST Teri Lloyd 15 Nov 10 7:49 PM MST
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Dominique 11 Nov 10 7:15 PM MST Demetrica Jefferis 12 Nov 10 4:55 PM MST Cassandra Dominique 15 Nov 10 4:48 PM MST Melanie Hicks 12 Nov 10 7:06 PM MST Cassandra Dominique
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unit 5 discusion - Earnings Management versus Managing...

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