Which of the following is the term within the GAAP framework whereby firms can engage in a process of controlling their earnings, otherwise known as "smoothing" their earnings, as long as it's not taken to an extreme.
A) commingling
B) delisting
C) window dressing
D) earnings management

Question

Quizplus · Accepted Answer

Earnings management is the term used within the GAAP framework to describe the process by which companies can legally engage in controlling or "smoothing" their earnings, provided it does not involve fraudulent practices or extreme manipulations. This involves making strategic decisions that may influence the timing or recognition of revenue and expenses.

Which of the Following Is the Term Within the GAAP