What does a company hope to achieve by manipulating earnings?
A) meet debt covenant restrictions
B) artificially inflate share prices
C) meet analysts' forecasts or benchmarks such as prior-year earnings
D) all of the above

Question

Quizplus · Accepted Answer

By manipulating earnings, a company can achieve all of the above, including meeting debt covenant restrictions, artificially inflating share prices, and meeting analysts' forecasts or benchmarks such as prior-year earnings. However, such actions are illegal and unethical and can lead to negative consequences for the company and its stakeholders.

What Does a Company Hope to Achieve by Manipulating Earnings