A manager whose compensation is tired to improving
A manager whose compensation is tired to improving the firm’s inventory turnover most likely has an incentive to:
A. overstate assets.
B. understate earnings.
C. overstate working capital.
参考解答
4j8***100
2024-11-07 16:06:47
Ans:B.
Inventory turnover =
A manager who wishes to manipulate earnings or the balance sheet to show improvement in this ratio can either understate inventories, which would understate working capital and total assets, or overstate COGS, which would understate earnings.
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