A Company Is Concerned That Analysts Will Be Disappointed That

question 54

Multiple Choice

A company is concerned that analysts will be disappointed that its earnings per share for 2017 will be $1.50. In the late part of 2017, the company tells analysts its earnings are only likely to be $1.45 per share, so that the analysts will see $1.50 as a pleasant surprise. This is an example of

• A) Accruals management
• B) Expectations management
• C) Fraud
• D) Real earnings management

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Definitions:

Types

Distinctive categories or varieties of objects, individuals, or phenomenons characterized by specific common features.

Experimental Control

A component of scientific experiments where variables are kept constant to accurately assess the effect of the independent variable on the dependent variable.

Random Assignment

A method used in experiments to distribute participants randomly across various groups to ensure each group is similar at the start of the experiment.

Extraneous Variables

Variables other than the independent variable that may affect the outcome of an experiment, potentially confounding the results if not controlled.