Asked by hannah mazzeo on Jun 04, 2024
Verified
In industries that are subject to unwanted attention from politicians,managers sometimes use accounting methods to make the company seem less profitable than it really is.
Unwanted Attention
Undesirable focus or notice from others, often causing discomfort or distress.
Accounting Methods
Accounting methods refer to the rules a company follows in reporting revenues and expenses in its financial statements. The two main types of accounting methods are accrual basis and cash basis.
Politicians
Individuals involved in governing or making public policies, often holding elected positions.
- Comprehend the adaptability in accounting and its influence on the breaches of covenants and fluctuations in interest rates.
Verified Answer
Learning Objectives
- Comprehend the adaptability in accounting and its influence on the breaches of covenants and fluctuations in interest rates.
Related questions
Why Do Loan Agreements Often Contain Covenants Tied to Accounting ...
RAP Sometimes Shows Up in a Company's GAAP Financial Statements
Because Covenant Compliance Can Be Jeopardized by Mandated Changes in ...
A Requirement to Maintain a Certain Level of Fixed Charge ...
The Failure of a Company to Pay Other Debts,such as ...