Earnings management is the use of accounting techniques to smooth earnings.

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Earnings management involves using accounting techniques to manipulate reported earnings so that they appear more favorable to stakeholders. This can include techniques such as manipulating reserves, recognizing revenue early or delaying expenses, or using one-time gains or losses to smooth out fluctuations in earnings. However, while these techniques can make a company's financial results look better in the short term, they can also create long-term risks and can be unethical or even illegal in some cases.

Earnings Management Is the Use of Accounting Techniques to Smooth