Management often has more incentives to understate revenues than to overstate revenues.

Name: Management often has more incentives to understate revenues than to overstate revenues.
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Question

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Management typically has more incentives to overstate revenues to make the company appear more profitable and successful, which can increase stock prices, improve market position, and enhance management's reputation and potential bonuses.

Management Often Has More Incentives to Understate Revenues Than to Overstate