Which of the Following Earning Management Reasons Would NOT Be

question 1

Multiple Choice

Which of the following earning management reasons would NOT be viewed as a positive for shareholders?

• A) To accurately convey private information
• B) To increase short term profits
• C) To meet analysts' expectations
• D) To avoid violating debt covenants

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Definitions:

Disjunctive Proposition

A statement in logic that presents two or more alternatives, where the truth of at least one of the options implies the truth of the proposition.

Hypothetical Proposition

A conditional statement expressing a hypothesis and a consequence.

Hypothetical Proposition

A proposition or statement that is conditional and asserts a possible outcome if certain conditions are met.

Antecedent

In logic, the first half of a hypothetical proposition; in general, any preceding event, condition, or cause.