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Write an essay of between 980 and 1020 words on the following topic: In the context of earnings management and income smoothing, critically assess how and why ratios are used in analysing the financia
Write an essay of between 980 and 1020 words on the following topic:
In the context of earnings management and income smoothing, critically assess how and why ratios are used in analysing the financial statements of a company and what actions should any assessment of possible earnings management or income smoothing also include.
Please notes
· You must define all terms used including, for example, ‘earnings management’ and ‘income smoothing’.
· Your answer must be illustrated with appropriate examples from an actual case of a company where earnings management or income smoothing was found to have occurred.
