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Chad Elliott
April 8, 2003
Acct 2102 TR 9:30
Earnings Management
Earnings Management is the process of manipulating one’s financial reports to one’s best interest. ... Schilit lists some of the ways companies use earnings management to increase the income they report, or use that income at a later date, some are: “Recording revenue before it is earned, Boosting profits with nonrecurring transactions, Shifting current income to a later period, and Shifting future expenses to an earlier period. ... Lets say investors are looking at two companies, one uses Earnings Management, and the other does not. ... Earnings Management is easily abused, and people know when they are doing something they should not.
Approximate Word count = 574
Approximate Pages = 2.3
(250 words per page double spaced)
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