Explore BrainMass

Explore BrainMass

    Current-Period Income Effect- Four Earnings Management Approaches

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    In a study of how managers attempt to manage earnings, researchers analyzed a sample of 515 earnings- management attempts from a survey of experienced auditors. The frequency of effects is summarized
    in the table shown. Research question: At α = .01, is the effect on earnings independent of the approach used?

    Current-Period Income Effect of Four Earnings Management Approaches
    Approach Used
    Increase Decrease No Clear Effect Total
    Expenses and Other Losses 133 113 23 269

    Revenue and Other Gains 86 20 8 114

    Business Combinations 12 22 33 67

    Other Approaches 41 4 20 65

    Col Total 272 159 84 515

    © BrainMass Inc. brainmass.com June 3, 2020, 9:38 pm ad1c9bdddf
    https://brainmass.com/statistics/hypothesis-testing/current-period-income-effect-of-four-earnings-management-approaches-192464

    Solution Summary

    The solution examines the current-period income effect of four earnings management approaches. The frequency of the effects is used for these calculations.

    $2.19

    ADVERTISEMENT