Earnings Management May

question 18

Multiple Choice

Earnings management may:

• A) increase current period net income.
• B) decrease current period net income.
• C) may involve "consuming" prior period reserves for current period performance.
• D) All of the choices are correct.

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Definitions:

Tactical Plans

Short-term, detailed plans formulated to implement strategies and achieve specific objectives within an organization.

Operational Plans

Detailed, short-term action plans that outline how strategic goals will be achieved by an organization, specifying resources needed and processes to follow.

Specialization

The process of concentrating on and becoming expert in a particular subject or skill, often leading to increased efficiency.

Single-use Plans

Specific actions or strategies devised for a particular purpose or project, not intended for repeated or continuous use.