One Definition of Earnings Management Is That It Occurs When

question 73

Multiple Choice

One definition of earnings management is that it occurs when managers use:

• A) judgment in financial reporting to alter financial reports to mislead stakeholder.
• B) an accounting method that is inconsistent with other industry members.
• C) more conservative accounting estimates than other companies.
• D) pro forma accounting results as opposed to GAAP results.

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Definitions:

Dejobbing

Dejobbing refers to the process of restructuring or redesigning work in a way that traditional job definitions and classifications become less relevant, often in response to changes in technology or market demands.

Power Distance

A cultural dimension that reflects the extent to which less powerful members of organizations and institutions accept and expect that power is distributed unequally.

Low Power Distance

A societal characteristic where individuals perceive little difference in power and status among members, promoting equality and challenging authority.

Feedback

The information and reactions received about an individual's performance or about the results of a business activity, used as a basis for improvement.