A Version of Earnings Management That Became Common in the 1990s

question 56

Multiple Choice

A version of earnings management that became common in the 1990s was

• A) when management made changes in the operations of the firm to ensure that earnings did not increase or decrease too rapidly.
• B) reported "pro forma earnings."
• C) when management made changes in the operations of the firm to ensure that earnings did not increase too rapidly.
• D) when management made changes in the operations of the firm to ensure that earnings did not decrease too rapidly.

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Definitions:

Hyperactive Children

Children who exhibit higher than normal levels of activity and/or impulsivity that may interfere with their ability to complete tasks or engage socially.

Self-directed Speech

Internal or out-loud conversation one has with oneself, often used for self-guidance or problem-solving.

Self-control

The capacity to control our feelings, thoughts, and actions when confronted with challenges and spontaneous desires.

Contrast Assumption

The assumption that objects have only one label. Also known as the mutual exclusivity assumption (if a word means one thing, then it cannot mean another).