Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 4 - Accrual Accounting Concepts - Questions: 34

Answer

Companies Manage their earnings is different ways. One way of this is to use non-recurring gain to increase the numbers. Another way to jump the revenue is to make short-run sales.

Work Step by Step

These short-run sales will increase the revenue for immediate period, but will decrease the revenue for next / future periods. The companies also manage earning through adjusting entries.
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