1) In a study reported in CFO Magazine, the majority of CFOs said they could influence reported earnings by 3% or more, all legally (Durfee, 2006). The same article reported, in a survey of CFO readers, financial executives said they could increase earnings a few percentage points using allowable discretion (Durfee, page 28).
What types of decisions do financial executives make which impact earnings? What general rules should these executives follow in making these decisions?
