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:

Picture Effect

Digital enhancements applied to images to alter their appearance, such as shadows, glows, reflections, or 3D effects.

Slicer

A tool in spreadsheet applications, like Microsoft Excel, used to filter data in tables, pivot tables, or pivot charts, allowing a more interactive data exploration experience.

Picture

A photograph or image created through various means, such as painting, drawing, or digital rendering, used for display or illustration.

Glow Picture Effect

A graphical editing effect that adds a halo of light or color around the edges of an image to create a glowing appearance.