Which of the Following Is Not a Form of Earnings

question 62

Multiple Choice

Which of the following is not a form of earnings management?

• A)Changes in accounting assumptions
• B)Timing revenue recognition
• C)Write-downs of operating assets
• D)Reporting fictitious transactions

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Definitions:

Increase Expenses

Refers to the rise in costs or expenditures that a company may experience as part of its operations.

Earning Revenue

The income a company generates from its business activities, typically from the sale of goods or services.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the owners' claim on the business assets.

Assets

Economic resources owned or controlled by a business, expected to provide future benefits.