Which of the Following Is Not Usually a Motivating Factor

question 53

Multiple Choice

Which of the following is not usually a motivating factor for management to manage earnings?

• A) present earnings in a smooth and upward trend
• B) to meet desired profit goals
• C) to meet a regulatory requirement to manage earnings
• D) to avoid reporting a loss for a particular accounting period

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Definitions:

Federal Government

The national government of a federal country, which holds the authority to govern matters that affect the entire nation, distinct from state or local governments.

Private Activity

Activities undertaken by individuals or private entities without direct government involvement or subsidy.

Equal Protection Clause

A provision in the Fourteenth Amendment of the U.S. Constitution that prohibits states from denying any person within its jurisdiction the equal protection of the laws.

Strict Scrutiny Test

A form of judicial review that courts use to determine the constitutionality of certain laws, requiring the law to be necessary to achieve a compelling government interest and be narrowly tailored.