The Manipulation of Revenues and Expenses to Achieve a Specific

question 133

Multiple Choice

The manipulation of revenues and expenses to achieve a specific outcome is called

• A)earnings management.
• B)the matching rule.
• C)adjusting entries.
• D)revenue recognition.

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Definitions:

Operating Departments

Operating departments refer to the divisions within a company directly involved in its core business activities and operations.

Maintenance Expenses

Costs incurred to keep property, equipment, or assets in efficient operating condition, not improving but merely maintaining them.

Square Footage

A unit of area measurement equal to a square that is one foot on each side, commonly used to measure the size of an area such as real estate or interior spaces.

Administration Expenses

Expenses that relate to the overall management and operations of a business, such as salaries of executive personnel, legal and professional fees.