Deliberately Recording Errors or Ignoring Mistakes in the Financial Statements

question 31

Multiple Choice

Deliberately recording errors or ignoring mistakes in the financial statements under the assumption that their impact is not significant, is the definition of which of the following earnings management techniques?

• A)Taking a bath
• B) Creative acquisition accounting
• C) Creasing "cookie jar" reserves
• D) Abusing the materiality concept

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Definitions:

Reciprocal Behavior

Mutual action or exchange between parties, where each party responds to the other with a similar kind of behavior.

Reciprocally Related

Being mutually influencing or having a two-way relationship where both parties have an effect on each other.

Attribution Theory

A psychological theory that explains how individuals pinpoint the causes of their own and others' behavior.

Internal

Relating to or occurring within an organization or entity.