The planned timing of revenues, expenses, gains, and losses to smooth out bumps in earnings is the definition of
A) quality of earnings.
B) earnings management.
C) smoothing of earnings.
D) earnings averaging.

Question

Quizplus · Accepted Answer

Earnings management involves the planned timing of revenues, expenses, gains, and losses to smooth out fluctuations in earnings, making financial results appear more stable and predictable than they actually are.

The Planned Timing of Revenues, Expenses, Gains, and Losses to Smooth