Topic: Accounting earnings and cash flows as measures of firm performance: The role of accounting
Earnings are the summary measure of firm performance produced under the accrual basis of accounting.
Earnings are impor
Topic: The effect of audit quality on earnings management, Contemporary Accounting Research
The article is about the effect of audit quality on earnings management through discretionary accruals.
Managers have incentives to "a
Article: Managerial ability and earnings quality by Peter R. Demarion, Baruch Lev, Melissa F.
Lewis, and Sarah E. McVay
In this article Managerial ability and earnings quality, by Peter R. Demarion, Baruch Lev,
Melissa F. Lewis
Topic: Current accounting for leases requires that certain leases be capitalized. For capital
leases, an asset and the associated liability are recorded. Whether or not the lease is capitalized,
the cash flows are the same. The rental
FASBs framework should provide benefits to the system such as:
Establishing accounting standards on a consistent and useful basis.
Increasing financial statement users understanding of and confident in financial reporting.
Article: Assessing the Allowance for Doubtful Accounts
This article describes three techniques for assessing allowance for doubtful accounts estimates
and complying with Statement on Auditing Standards (SAS) no. 57 and AU sect
Article: The Power of Cash Ratios by John R. Mills and Jeanne H. Yamamura
In this article The Power of Cash Ratios, John Mills and Jeanne H. Yamamura describe the
importance of cash ratios to understand the companys viability.
Topic: Financial Fraud
First of all, what is financial Fraud?
Financial fraud can be broadly defined as an intentional act of deception involving financial transactions
for purpose of personal gain. Fraud is a crime, and is also a ci
Topic: Income Statement Format Accountants have advocated two types of income statements
based on differing views of the concept of income: the current operating performance and allinclusive concepts of income.
Article: Ghost Goods: How to Spot Phantom Inventory by JOSEPH T. WELLS
In this article Ghost Goods: How to Spot Phantom Inventory by JOSEPH T. WELLS examines
the inventorys manipulations. The valuation of inventory involves tw
Managerial ability and earnings quality. By Demerjian, Peter R., Lev, Baruch, Lewis,
Melissa F., & McVay, Sarah E., (2013). The Accounting Review, 88, 463-466.
Baik, B.; Farber, D.; Lee, S. (2011), CEO ability and management earnings forecasts;
This paper examines the relationship between the conceptual framework and managerial ability
and its measures. This paper start with the differences measures centered on the frame work
concept, including the objectives of financial reporting, the
Topic: Measurement in Financial Reporting: The Need for Concepts
The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board
(FASB) strive to base their financial accounting standards d
Chapter 17 - Individuals as Employees and
Proprietors 2 copy
One indicia of independent contractor (rather than employee) status is when
the individual performing the services is paid based on time spent (rather than
on tasks performed).
Chapter 6 - Losses and Loss Limitations 2 copy
James is in the business of debt collection. He purchased a $20,000 account
receivable from Green Corporation for $15,000. During the year, James
collected $17,000 in final settlement of the account. James
Chapter 7 - Property Transactions: Basis, Gain
and Loss, and Nontaxable Exchange copy
Realized gain or loss is measured by the difference between the amount
realized from the sale or other disposition of property and the propertys
adjusted basis at the
Chapter 11 - Partnerships and Limited Liability
Entities 2 copy
A partnership is an association formed by two or more taxpayers (who may be
any type of entity) to carry on a trade or business.
Chapter 15 - Comparative Forms of Doing
Business 2 copy
For Federal income tax purposes, a business entity with two or more owners
may be conducted as a partnership, C corporation, S corporation, or limited
Chapter 8 - Property Transactions: Capital Gains
and Losses, Section 1231, and Recapture
Provisions 2 copy
The tax law requires that capital gains and losses be separated from other
types of gains and losses because an alternative tax calculation may b
Chapter 16 - Introduction to the Taxation of
Individuals 2 copy
Under the Federal income tax formula for individuals, a choice must be made
between claiming deductions for AGI and itemized deductions.
Chapter 9 - Corporations: Organization, Capital
Structure, and Operating Rules 2 copy
Tomas owns a sole proprietorship, and Lucy is the sole shareholder of a C
corporation. In the current year both businesses make a net profit of
$60,000. Neither busin
Chapter 10 - Corporations: Earnings & Profits
and Distributions copy
Distributions by a corporation to its shareholders are presumed to be a
dividend unless the parties can prove otherwise.