Northeastern University Accounting Objective and Realistic Forecasts. Question
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I’m working on a accounting question and need an explanation and answer to help me learn.
Answer Question 10.2 Objective and Realistic Forecasts. page 829
10.2 Objective and Realistic Forecasts. The chapter encourages analysts to develop forecasts that are realistic, objective, and unbiased. Some firms’ managers tend to be optimistic. Some accounting principles tend to be conservative. Describe the different risks and incentives that managers, accountants, and analysts face. Explain how these different risks and incentives lead managers, accountants, and analysts to different biases when predicting uncertain outcomes.
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