Besides Using an Overstatement of Earnings to Inflate a Company's

question 133

Multiple Choice

Besides using an overstatement of earnings to inflate a company's share price, overstating earnings may also be used to:

• A) deflate the amount of taxes the corporation pays.
• B) avoid paying raises to employees.
• C) ensure larger bonuses to upper management at year-end.
• D) avoid paying dividends to shareholders.
• E) avoid bonuses to management.

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