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Manipulation of earnings by overstating revenue

Explain how a company's management could overstate revenue to manipulate earning.

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Explain how a company's management could overstate revenue to manipulate earning.

The management of the company wants to show high artificial earnings to present the rosy picture to the public to woo the investors to invest in the shares of the company or to increase the share prices. The earnings can be shown on higher side than the actual by overstating the revenue or understating the expenditure. The management ...

Solution Summary

The answer contains the methods by which the earnings can be manipulated by overstating the revenue.

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