The Practice of Shifting Income from Good Years to Poor

question 60

Multiple Choice

The practice of shifting income from good years to poor years in order to show a record of steady growth is

• A)known as earnings management and is considered unethical.
• B)highly recommended but not required by GAAP.
• C)a basic requirement of accrual accounting.
• D)impossible if Generally Accepted Accounting Principles are followed.

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Definitions:

Agreeableness

A personality trait that reflects a person's tendency to be compassionate, cooperative, and friendly.

Eating Disorder

Psychological disorders characterized by abnormal or disturbed eating habits, such as anorexia nervosa, bulimia nervosa, and binge-eating disorder.

Resilient/High-Functioning

Characterizes individuals who effectively manage stress and bounce back from challenges while maintaining high levels of performance.

Undercontrolled/Emotionally Dysregulated

A description of individuals who have difficulties in managing their emotions, leading to impulsive actions and problems in emotional self-regulation.