Which of the Following Is NOT an Earnings Management Technique

question 10

Multiple Choice

Which of the following is NOT an earnings management technique?

• A) Failing to write down or write off impaired assets
• B) Releasing questionable reserves into income
• C) Failing to record expenses and related liabilities when future obligations remain
• D) Creating an allowance for uncollectible accounts and adjusting it at year end

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Definitions:

Slaves

Individuals forced into servitude, deprived of personal freedom and the right to make their own life choices, often under harsh conditions.

Autonomy

The ability or right of an entity, especially a region or organization, to govern itself independently.

Owners

Individuals or entities that hold legal title to an object, property, or business, giving them certain rights such as usage, control, and the ability to transfer ownership.

Compromise of 1850

A series of laws passed in 1850 aimed at resolving the territorial and slavery controversies arising from the Mexican-American War.