Soal latihan
A1034 Akuntansi Menengah
Pertemuan 11 s/d 14
Exercise 1
Earnings management refers to:
a. a company's attempt to follow GAAP.
b. refers to the buying and selling of investments.
c. management's attempt to manipulate the reported net income.
d. none of these choices.
Which of the following are factors that motivate earnings management?
a. provide income smoothing
2.
b. meet external expectations
c. meet internal target
d. all of these choices
Examples of earnings management include:
a. pressure to raise or lower taxes.
3.
b. increase or cut spending.
c. to elect different representatives.
d. all of these choices.
4.
On the earnings management continuum, deceptive accounting refers to:
a. strategic matching.
b. change in methods or estimates with full disclosure.
c. change in methods or estimates but with little to no disclosure.
d. non-GAAP accounting.
On the earnings management continuum, fraud refers to:
a. strategic matching.
5.
b. non-GAAP accounting.
c. fictitious transactions.
d. change in method or estimates with full disclosures.
On the earnings management continuum, aggressive accounting refers to:
a. strategic matching.
6.
b. change in methods or estimates with full disclosure.
c. change in methods or estimates but with little to no disclosure.
d. non-GAAP accounting.
Big bath charges, of Chairman Levitt's top five accounting hocus-pocus items, refers to:
a. the recognition of all of the bad news in one year.
7.
a company overestimating expenses in good times so that a
b. company may recognize less expense in bad times.
recognizing revenues when the contracts are signed but before
c. the product has been delivered or services rendered.
d. the urging of auditors of raising their materiality levels.
Cookie jar reserves, of Chairman Levitt's top five accounting hocus-pocus items, refers to:
a. the recognition of all of the bad news in one year.
a company overestimating expenses in good times so that a
b. company may recognize less expense in bad times.
8.
recognizing revenues when the contracts are signed but before
c. the product has been delivered or services rendered.
d. the urging of auditors of raising their materiality levels.
Elements of an earnings management meltdown includes:
a. downturn in business.
b. pressure to meet expectations.
9.
c. insufficient user skepticism.
d. all of these choices.
Insufficient user skepticism refers to:
lack of concern by the investment community regarding a company's declining operating
a. performance.
10.
b. the inability of companies to reach their internal earnings numbers.
c. the lack of information about the change in methods or estimates.
d. none of these choices.
Exercise 2
External expectations provide window dressings for an IPO or a loan.
True
False
2.
Making a company's earnings appear more volatile is referred to as income smoothing.
True
False
Strategic matching of one-time gains and losses is referred to as savvy transactions.
3.
True
False
Change in methods or estimates with little or no disclosure is referred to as aggressive
accounting.
4.
True
False
Chairmans' Levitt's top five accounting Hocus-Pocus items includes creative acquisition
accounting.
5.
True
False
Pro forma earnings number is the regular GAAP earnings number with some revenues,
expenses, gains, or losses excluded.
6.
True
False
7. A manager has an ethical and fiduciary responsibility to carefully manage the resources of a
publicly traded company in order to maximize the value of the shareholders.
True
False
The amount of reported earnings does not impact the public's perception of a company.
8.
True
False
Cost of debt financing is the cost a company bears to obtain external financing.
9.
True
False
Good accounting standards and ethical behavior may lower a company's cost of capital.
10.
True
False