Give three examples of how management can engage in "real" earnings management to achieve the desired reporting of higher net income.

Question

Quizplus · Accepted Answer

The Answer is Cutting back or delaying expenditures for advertising would boost reported earnings in the current period by reducing expenses.Cutting back or delaying expenditures for research and development would boost reported earnings in the current period by reducing expenses.
Offering special incentives to increase sales right before year end may increase profits temporarily

Give Three Examples of How Management Can Engage in "Real