Which of the following is NOT McKee's explanation of "earnings management"?
A)A smooth net income by choice does not reflect what investors and creditors need or want to know since it masks true performance.
B)It creates a more stable and predictable earnings stream by smoothing net income.
C)It is a reasonable and legal management decision making and reporting intended to achieve stable and predictable financial results.
D)Earnings management reflects a conscious choice by management to smooth earnings over time and it does not include devices designed to "cook the books."

Question

Quizplus · Accepted Answer

McKee's explanation of earnings management does not include the idea that smoothing net income masks true performance, which is what choice A suggests.

Which of the Following Is NOT McKee's Explanation of "Earnings