"Earnings Management" Involves Deliberate Actions Taken by Management to Meet

question 29

Multiple Choice

"Earnings management" involves deliberate actions taken by management to meet earnings objectives. "Profit smoothing" is:

• A) an acceptable accounting policy, just like earnings management.
• B) the reverse of earnings management.
• C) a form of earnings management aimed at reducing periodic fluctuations in earnings.
• D) an acceptable accounting policy, unlike earnings management.