What are two common reasons for managers to manipulate reported earnings?Choose 2 answers They are preparing to qualify for a bank loan. They are feeling pressured to comply with an external auditor. They are feeling pressured to meet internal sales goals. They are preparing to meet Sarbanes-Oxley requirements.

"Reasons why managers may want to manage earnings include all of the following, except:" Investors may want to see fluctuating earnings over time Managers' bonuses may depend on the earnings amount To meet analysts' and shareholder expectations Investors may want to see smooth earnings over time

Under the ‘Free Market’ perspective of accounting regulation, the market for managers argument assumes that: Under the ‘Free Market’ perspective of accounting regulation, the market for managers argument assumes that: The market for managers has no bearing on the financial accounting disclosures. The market for managers is not substitute for financial accounting regulation. Managers’ future performance impacts on the remuneration they receive in the future. Therefore, regulation is necessary to compel them to provide information. Managers’ previous performance impacts on the remuneration they receive in the future and, in the absence of regulation, they will provide optimal information.

The audit of the financial statements relieves management or those charged with governance of responsibilities.Select one:TrueFalse

Would financial statement analysis still be necessary if managers reported truthfully andfully on the firm’s performance? Why or why not?

The main reason that financial reporting exists is to ensure that information is made available to users to assist in decision-making. Question 5 Answer True False