Question

1. General Electric - 2000: Quality of Earnings, the impact of earnings management and methods such as channel stuffing on an entity’s financial statements.

Answer 1

The quality of a company's earnings, such as general electricity, is created by eliminating any inconsistent or one-time events that may actually reduce the bottom line on workload. Once they are dropped, profits from higher sales or lower costs are clearly seen.

Business income is the net income or profit of a company during a given period. Earnings management is used to reduce the revenue fluctuations of companies and try to generate maximum profit every month, quarter or year. The high fluctuations in income and expenditure can be a normal part of a company's operations.

Based on a sample of companies involved, such as channel stuffing, a model can be developed that estimates Channel stuffing behavior has the potential for a wide range of companies. Channel stuffing allows for real-time management of short-term earnings. In general electricity, it is one-time estimates of the impact of opportunity and financial performance measures. Sometimes smaller companies, more growth companies, more profits And the ability to accumulate is engrossed in channel stuffing. Further analysis shows that companies like Electricity engaged in channel-stuffing reduce sales, production, and depreciation experiences. In reality these results from the channel stuffing sample need to be controlled.