Earnings management is
A) when management makes changes in the operations of the firm to ensure that earnings do not increase or decrease too rapidly.
B) when management makes changes in the operations of the firm to ensure that earnings do not increase too rapidly.
C) when management makes changes in the operations of the firm to ensure that earnings do not decrease too rapidly.
D) the practice of using flexible accounting rules to improve the apparent profitability of the firm.

Question

Quizplus · Accepted Answer

Earnings management involves the manipulation of financial reporting practices to present desired financial results, often by exploiting accounting flexibility to enhance the appearance of profitability.

Earnings Management Is