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Managers may also manipulate results, especially if rewards are linked to performance. This can be achieved by changing the timing of capital purchases, building up inventories and speeding up or delaying payments and receipts.
what is meaning ?It depends on how the bonus is calculated (and I think you are referring to a specific exam question which stated how the bonus was calculated).
However things such as changing the timing of the purchase of new assets will affect the profit (because of the depreciation) and will certainly affect the cash flow – if the bonus is calculated on the profit or on the cash flow, then changing the timing will affect it.
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