Which of the following is a form of earnings management in which revenues and expenses are shifted between periods to reduce fluctuations in earnings?
A) fraudulent financial reporting
B) expense smoothing
C) income smoothing
D) Each of the above is correct.

Question

Quizplus · Accepted Answer

Income smoothing is a form of earnings management in which revenues and expenses are shifted between periods to reduce fluctuations in earnings. Fraudulent financial reporting and expense smoothing are other forms of earnings management, but they do not involve the same goal of reducing fluctuations in earnings.

Which of the Following Is a Form of Earnings Management