The Practice of Shifting Income from Good Years to Poor

question 39

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 may be considered unethical.
• B)highly recommended,but not required by IFRS.
• C)a basic requirement of accrual accounting.
• D)a requirement of IFRS.

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Definitions:

Introversion/Extraversion

A personality dimension that describes the extent to which individuals are outgoing and gain energy from social interaction, versus those who are more reserved and gain energy from solitude.

Heritable

A characteristic or trait that can be passed from parents to their offspring through genes.

Trait Approach

A perspective in psychology that focuses on the identification and measurement of specific personality traits to understand individual differences.

Personality

The combination of characteristics or qualities that form an individual's distinctive character and influence behaviors, thoughts, and emotions.