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courses as an illustration of the impact of a company's management control system and corporate culture on reported earnings per share and thus QOE.
We also suggest that carefully managed role playing (Craig and Amernic 1994) has potential to reinforce the QOE theme during the course.
One might ask why employ QOE as a framing device in Intermediate Financial Accounting instead of other alternative unifying themes?
The following rather elaborate commentary on this short case will provide more than sufficient material for the instructor in leading a short discussion on this company's QOE at this early stage in the course.
Comparing the details of cash flow and net income suggests that the earnings number of +$250,000 relative to operating cash flow seems hard to justify for this company, and thus QOE appears to be very low.
They are then requested to identify the financial reporting issues in the case and to garner evidence to construct an argument supporting their view of the company's QOE.