Which of the Following Is NOT an Earnings Management Technique

question 10

Multiple Choice

Which of the following is NOT an earnings management technique?

• A) Failing to write down or write off impaired assets
• B) Releasing questionable reserves into income
• C) Failing to record expenses and related liabilities when future obligations remain
• D) Creating an allowance for uncollectible accounts and adjusting it at year end

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Definitions:

Pareto Optimal

Pareto optimal is a state of allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off.

Smelted

The process of extracting a metal from its ore by heating and melting, often involving a chemical reduction reaction.

Carload

A shipping term used to indicate the minimum quantity of cargo necessary for goods to be shipped at a carload rate, typically pertaining to rail transport.

Smelted

The process of extracting a metal from its ore by heating and melting.