Which of the Following Is Not a Form of Earnings

question 135

Multiple Choice

Which of the following is not a form of earnings management?

• A) Timing of booking of sales
• B) Attaching values to contracts for purposes of booking revenue
• C) Shipping to warehouses to book sales
• D) Postponing booking returns
• E) All of the above are forms of earnings management

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Definitions:

Technological Change

The process of invention, innovation, and diffusion of technology or processes which significantly alters the way goods or services are produced.

Productivity

A measure of the efficiency of production, often quantified as the ratio of outputs produced to inputs used in the production process over a defined period of time.

American Economy

The economic system of the United States, characterized by a mix of private and public enterprises and a relatively high level of technological innovation and productivity.

Savings Rate

The Savings Rate is a measure indicating the proportion of income that households save rather than spend on consumption.