Which of the Following Best Defines the Term Earnings Management

question 16

Multiple Choice

Which of the following best defines the term earnings management?

• A) It is the intervention by the management in the internal financial reporting process, with the intent of boosting the earnings of an organization.
• B) It is the purposeful intervention in the external financial reporting process, with the intent of obtaining some private gain.
• C) It is the legitimate alteration of internal reports by the management to influence contractual outcomes that depend on reported accounting numbers.
• D) It is a systematic management of earnings of an organization by its external shareholders, with the intent of increasing future profits.

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Definitions:

Human Capital Infrastructures

Systems and facilities that support the development, deployment, and enhancement of the skills and knowledge of the workforce.

Experienced Nurses

Healthcare professionals who possess a significant amount of clinical knowledge and skills, gained through years of practice in nursing.

Business Incubator

Organizations designed to accelerate the growth and success of startup and early-stage companies by providing them with necessary support and financial services.

New Businesses

Entities that have been recently established to provide goods or services, often characterized by innovative approaches or markets.