Which of the following statements is false with regard to quality of financial reporting?
a. Financial statements should reflect an accurate picture of a company's financial condition and performance.
b. It is unlikely that management can manipulate the bottom line due to the regulations in place to enforce GAAP.
c. Financial information should be useful both to assess the past and predict the future.
d. The closer that the picture presented through the financial data is to reality, the higher the quality of financial reporting.
b
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Polaris Industries is forecasting its financial statements for Year 6. Selected financial information for Year 5 is provided in the table. What is Retained Earnings for Year 6?
Selected Financial Information Polaris Industries Inc. ($000s) Year 5 Ratios (to Sales) Forecast Year 6 Revenue $1,908,459 $1,803,494 COGS 1,454,374 0.762067 SG&A 213,114 0.111668 Dep. Exp. 28,632 30,084 EBIT 212,339 Int. Exp. 4,713 2,117 EBT 207,626 Provision for Income taxes 64,348 31%* Net Income $143,278 Dividends $700 Retained Earnings $369,240 *Tax rate is a proportion of Earnings before Taxes. A) $ 503,447 B) $ 504,147 C) $ 534,137 D) $ 534,837 E) $ 607,556
Multiple tables at Red Lobster were empty yesterday afternoon. Which characteristic of services is most likely a concern for the restaurant chain?
A) service intangibility B) service perishability C) customer participation D) product bundling and compatibility