One Definition of Earnings Management Is That It Occurs When

question 73

Multiple Choice

One definition of earnings management is that it occurs when managers use:

• A) judgment in financial reporting to alter financial reports to mislead stakeholder.
• B) an accounting method that is inconsistent with other industry members.
• C) more conservative accounting estimates than other companies.
• D) pro forma accounting results as opposed to GAAP results.

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Definitions:

Condyle

A round prominence at the end of a bone, typically part of a joint where it articulates with another bone.

Tuberosity

A large rounded projection on a bone, typically for the attachment of muscles or ligaments.

Meatus

Passageway or tunnel.

Fossa

A depression or hollow in a bone or other anatomical structure, often serving as a socket or receptacle for another part.