In industries that are subject to unwanted attention from politicians,managers sometimes use accounting methods to make the company seem less profitable than it really is.

Question

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This is a common practice known as "income smoothing" or "earnings management" where companies manipulate their financial statements to present a smoother and more consistent picture of their earnings over time, in order to avoid fluctuations that may attract government intervention or investor skepticism. While not always illegal, these practices can be unethical and deceptive, and may lead to legal and reputational risks if discovered.

In Industries That Are Subject to Unwanted Attention from Politicians,managers