Which of the following is NOT an earnings management technique?
A) Failing to write down or write off impaired assets
B) Releasing questionable reserves into income
C) Failing to record expenses and related liabilities when future obligations remain
D) Creating an allowance for uncollectible accounts and adjusting it at year end

Question

Quizplus · Accepted Answer

Creating an allowance for uncollectible accounts and adjusting it at year end is a legitimate accounting practice for estimating bad debts and is not considered an earnings management technique. Option A, B, and C are all examples of earnings management techniques.

Which of the Following Is NOT an Earnings Management Technique