A reason that managers may manage earnings "upward" would be to
A) Reduce the stock price, in advance of trying to buy out public shareholders, and to take the company private
B) Reduce political pressure on the company for charging high prices for its profits
C) "Save" some earnings to help meet budget targets in future years
D) Increase the stock price

Question

Quizplus · Accepted Answer

Managers may manage earnings upward to increase the stock price, which can lead to higher bonuses and better performance evaluations.

A Reason That Managers May Manage Earnings "Upward" Would Be