Which of the following is NOT an earnings management technique?
A)Recording revenue the customer is obligated to pay
B)Recording revenue when future services remain to be provided
C)Recording sales that lack economic substance
D)Including investment income or gains as part of revenue

Question

Quizplus · Accepted Answer

Recording revenue the customer is obligated to pay is a legitimate accounting practice, as it reflects actual sales transactions where the customer has a legal obligation to pay.

Which of the Following Is NOT an Earnings Management Technique