Earnings Management Is the Use of Accounting Techniques to Smooth

question 284

True/False

Earnings management is the use of accounting techniques to smooth earnings.

---

Definitions:

Diffusion of Responsibility

A phenomenon where individuals in a group are less likely to take action or feel a sense of responsibility because the responsibility is spread across the entire group.

Distressing Situation

An event or circumstance that causes anxiety, sorrow, or pain, often triggering emotional or psychological stress.

Presence

The state or fact of existing, occurring, or being present in a place or thing.

Self-Employed

A person who works for themselves and does not receive a salary from an employer, but instead earns income directly from their business or profession.