For Each of the Following Factors, Determine If the Given

Essay

For each of the following factors, determine if the given change or level of that factor would lead an analyst to believe that managers of a firm are more or less likely to engage in earnings manipulation:
$\begin{array}{|l|l|} \hline \text { } & \text {Earuings Maruipulation }\\\hline \text { } & \text { More likely/lesslikely } \\\hline \text { 1. DaysSales in Receivable Index increases } & \text { } \\ \hline\text { 2. Gross Margin index decreases below 1 } & \text { } \\\hline \text { 3. AssetQuality index increases } & \text { } \\\hline \text { 4. Depreciation index decreases to below 1 } & \text { } \\\hline \text { 5. Leverage Index increases} & \text { } \\\hline\end{array}$