Earnings Management

question 3

Multiple Choice

Earnings Management:

• A)is always bad for shareholders.
• B)is always illegal.
• C)depends on timing difference between cash and accrual accounting.
• D)None of the above.

---

Definitions:

Government Budget Deficit

A financial situation where a government's expenditures exceed its revenues in a given fiscal period, leading to borrowing or debt accumulation.

Political Reforms

Changes introduced to the political system of a country or region aimed at improving governance, enhancing democracy, and addressing flaws in the existing structure.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual rate.

Exchange Rate

The value of one currency expressed in terms of another currency, used to determine how much of one currency can be exchanged for another.