What Are Some Ways in Which Earnings Management on Construction

question 85

Multiple Choice

What are some ways in which earnings management on construction contracts can be minimized?

• A)Determining the degree of completion in a manner that best represents the underlying performance of the project.
• B)Judiciously making estimates for the cost-to-cost approach that maximize earnings in the current year.
• C)Underestimating future costs.
• D)Not using engineering estimates or the cost-to-cost approach.

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Definitions:

Interpersonal Attraction

The force that draws individuals together to form friendships, romantic relationships, and other social connections, influenced by factors like physical attractiveness, personality, and shared interests.

Sexual Attraction

The feeling of finding someone sexually appealing, leading to a desire for sexual contact with them.

Levinson's Theory

A theory that proposes adult development progresses through a series of stages, each centered around certain life tasks and challenges.

Life Structure

The overall organization of an individual's roles, relationships, and activities within society, often evaluated in adulthood to assess personal development and fulfillment.