Earnings management enhances the decision usefulness of financial reporting.

Name: Earnings management enhances the decision usefulness of financial reporting.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Earnings management refers to the practice of manipulating financial results to meet certain objectives, such as meeting earnings targets or inflating stock prices. This can lead to distorted financial reporting and misrepresent the financial health of a company. As a result, it does not enhance the decision usefulness of financial reporting.

Earnings Management Enhances the Decision Usefulness of Financial Reporting