Which of the Following Is a Form of Earnings Management

question 16

Multiple Choice

Which of the following is a form of earnings management in which revenues and expenses are shifted between periods to reduce fluctuations in earnings?

• A)Fraudulent financial reporting
• B)Expense smoothing
• C)Income smoothing
• D)Each of the above is correct.

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Definitions:

Normal Curve

A bell-shaped curve that represents the distribution of many types of data where most occurrences take place in the middle of the distribution.

Standard Deviation

Standard deviation is a measure of the amount of variation or dispersion in a set of values, indicating how much the values in a dataset deviate from the mean.

Raw Scores

The initial, unadjusted scores obtained directly from a test or assessment.

Test-retest Reliability

A measure of consistency where the same test is administered to the same group at two different points in time to assess the consistency of the results.