According to the survey of senior managers by Graham, Harvey and Rajgopal, the senior managers admitted to the following:
I. adjusting their firms' operations and investments in order to manage earnings.
II. they were willing to decrease discretionary spending in R&D, advertising or maintenance if necessary to meet earnings target.
III. many of them would, if necessary, also defer or reject investment projects with positive
NPVs.
A) I only
B) II only
C) I and II only
D) I, II, and III

Question

Quizplus · Accepted Answer

The survey of senior managers conducted by Graham, Harvey and Rajgopal revealed that the senior managers admitted to all three statements - adjusting their firms' operations and investments in order to manage earnings, being willing to decrease discretionary spending in R&D, advertising or maintenance if necessary to meet earnings target, and deferring or rejecting investment projects with positive NPVs if necessary. Hence, the best choice is D - I, II, and III.

According to the Survey of Senior Managers by Graham, Harvey