Which of the Following Is NOT Considered "Earnings Management

question 6

Multiple Choice

Which of the following is NOT considered "earnings management?"

• A) "Earnings management" is done to project smoother earnings from year to year
• B) Management emphasizes achieving long-term results to meet financial goals
• C) Management uses "cookie-jar reserves each year"
• D) Executives manipulate the earnings in order to match their predetermined target

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Definitions:

Creativity

The use of imagination or original ideas to create something; inventiveness.

Intuition

The ability to understand something immediately, without the need for conscious reasoning.

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Activities or exercises that require mental effort and are used to assess or improve cognitive functions.

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The functioning of the brain involving electrical, chemical, and neuronal actions to process information, control bodily functions, and enable consciousness.