As One of the Sources of Accounting Distortions, the Intentional

question 7

Multiple Choice

As one of the sources of accounting distortions, the intentional overstatement of an accrued restructuring charge is often referred to as a practice of:

• A)earnings management.
• B)capital adjustment.
• C)asset management.
• D)risk management.

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Definitions:

Passionate

Showing or caused by strong feelings or a strong belief.

Aggression

A range of behaviors that can result in both physical and psychological harm to oneself, others, or objects in the environment.

Instinctive

Relating to or denoting behaviors that are innate and automatic, performed without being based on prior experience or external cues.

Learning

An ongoing process that involves gaining and modifying information, beliefs, and skills through experience, instruction, or practice.