Reference no: EM13504750

1. Evaluate the following statements from an ethical perspective:
"Earnings management in a narrow sense is the behavior of management to play with the discretionary accrual component to determine high or low earnings."
"Earnings are potentially managed, because financial accounting standards still provide alternative methods."

2. In 2010, LinkedIn reported trade payable obligations totaling $10.8million in other accrued expenses within accrued liabilities instead of accounts payable. In 2011, note 2 in the 10-K financial statements described the use of accrued liabilities instead of accounts payable as a classification. Do you believe LinkedIn's accounting qualifies as a financial shenanigan? Why or Why not