Smoothing is a form of earnings management.

Name: Smoothing is a form of earnings management.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Smoothing involves manipulating earnings to reduce fluctuations and create a more consistent trend over time. This is done to present a more favorable picture to investors, but it can be considered a form of earnings management because it may not accurately reflect the true financial performance of the company.

Smoothing Is a Form of Earnings Management