Earnings management and earnings quality

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Essay: "Leasing transactions adversely influence earnings management and earnings quality". Leasing has become one of the common activities in many organisations and with many products. For example, According to a report from ZDNet, Samsung Electronics is going to launch a leasing program for its latest flagship smartphones the Galaxy S7 and S7 Edge in Samsung stores in South Korea. According to the same report, users can use the two smartphones simply by signing a 24-month lease agreement and by paying the monthly instalment plan (Solinap, 2016). Earnings in some organisations are a key indicator in determining performance. This essay provides your groups with an open-ended question. The statement does not presuppose a conclusion. The classroom practice of financial accounting has largely trained you to look for an exact answer. However, at workplaces, you have to work with limited and missing information, requiring you to search for additional information. This search takes you to research. The question is put in the form of a statement so that each group can search for evidence to support its solution. This is to simulate a workplace scenario where you often have to take a position but based on evidence. This evidence is arrived at through researching for information.

Reference no: EM131033664

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