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The management utilizes aggressive financial reporting procedures that have a substantial influence on the organization’s revenue. This could be as a result of proven fact that the corporate wishes to point out better economic functionality to be able to revise its bank loan phrases or to generally be qualified on the current incentive program executed by the board of administrators.
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The report presents a case in which Harnischfeger Corporation, a number one producer of development, mining and electrical equipments experienced a big fall within the need of company’s item on account of worldwide economic downturn in 1980s that considerably threatens the money steadiness of the corporation.
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