Earnings management is:

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Earnings management is the process of manipulating a company's financial results to meet certain expectations or goals. While some forms of earnings management are illegal, such as fraudulent accounting practices, some forms are legal and acceptable within certain bounds. For example, companies may use legitimate accounting practices to defer or accelerate revenue recognition, or to adjust for expected losses. However, companies that engage in extreme or unethical earnings management may face disciplinary action from regulatory bodies such as the SEC.

Earnings Management Is