Which of the Following Is an Example of Managing Earnings

question 27

Multiple Choice

Which of the following is an example of managing earnings up?

• A) Decreasing estimated salvage value of equipment.
• B) Writing off obsolete inventory.
• C) Underestimating warranty claims.
• D) Accruing a contingent liability for an ongoing lawsuit.

---

Definitions:

Neutralizing

In a psychological context, neutralizing refers to strategies used to counteract or mitigate unwanted thoughts and anxieties.

Social Skills Training

A form of behavioral therapy used to improve interpersonal skills through teaching and practice.

Psychodynamic Theorist

a specialist in a field of psychology that emphasizes systematic study of the psychological forces underlying human behavior, feelings, and emotions and how they might relate to early experience.

Cognitive-behavioral

Refers to a type of psychotherapy that focuses on changing unhelpful thinking and behavior patterns.