Lower than usual expenses may indicate a company is manipulating earnings using big bath charges.

Name: Lower than usual expenses may indicate a company is manipulating earnings using big bath charges.
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Question

Quizplus · Accepted Answer

Lower than usual expenses typically indicate efficient management or cost-saving measures, not necessarily manipulation through big bath charges, which involve taking all possible write-offs in one period to make future periods look better.

Lower Than Usual Expenses May Indicate a Company Is Manipulating