Earnings management occurs when:
A) income and expenses are managed to influence the performance of the entity.
B) financial statements and transactions are manipulated to influence perceptions about the entity.
C) executive salaries are increased surreptitiously by including the raises in late night meetings.
D) earnings are manipulated to improve the company's tax position.

Question

Quizplus · Accepted Answer

Earnings management involves manipulating financial statements and transactions to influence perceptions about the entity's financial performance.

Earnings Management Occurs When