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:

Kyphosis

A condition characterized by an excessive outward curvature of the spine, causing hunching of the back.

Lumbar

Relating to the lower region of the back between the ribs and the pelvis.

-Malacia

A suffix denoting a pathological softening of tissues, commonly used in medical terms.

-Penia

A suffix meaning deficiency or lack of something, commonly used in medical terminology, such as leukopenia (deficiency of white cells in the blood).