Which of the Following Earning Management Reasons Would NOT Be

question 9

Multiple Choice

Which of the following earning management reasons would NOT be viewed as a positive for shareholders?

• A)To meet analysts' expectations.
• B)To accurately convey private information.
• C)To increase short term profits.
• D)To avoid violating debt covenants.

---

Definitions:

Processing Errors

Mistakes that occur during the processing of data, transactions, or operational tasks, which can lead to inaccurate results or outputs.

Regular Audits

Periodic and systematic examinations of financial records and operations to ensure accuracy, compliance, and fairness.

Separation of Duties

A key internal control that involves dividing responsibilities among different people to reduce the risk of error or fraud.

Fraud

Dishonest or illegal trickery used to achieve financial or personal advantages.