A Version of Earnings Management That Became Common in the 1990s

question 56

Multiple Choice

A version of earnings management that became common in the 1990s was

• A) when management made changes in the operations of the firm to ensure that earnings did not increase or decrease too rapidly.
• B) reported "pro forma earnings."
• C) when management made changes in the operations of the firm to ensure that earnings did not increase too rapidly.
• D) when management made changes in the operations of the firm to ensure that earnings did not decrease too rapidly.

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Definitions:

Depreciation Method

A systematic approach to allocating the cost of a tangible asset over its useful life.