Which of the Following Is Typically NOT a Reason for Managing

question 91

Multiple Choice

Which of the following is typically NOT a reason for managing reported earnings?

• A) Meet external expectations
• B) Desire for personal gain
• C) Meet internal earnings targets
• D) Income smoothing

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Definitions:

Risk Avoidance Plan

A strategy or approach to identify, assess, and prevent potential risks from impacting a project or business activity.

Financial Risk

The possibility of losing money or the financial uncertainty involved in an investment, business venture, or other financial activities.

Project Risk

Potential problems that could endanger the success of a project, including uncertainties and potential negative events.

Organizational Risk

Refers to the potential for losses or other adverse outcomes that an organization may face due to various internal and external factors.