Earnings management pertains to:
A) accounting manipulations for the purpose of presenting the company in a biased manner.
B) conservative accounting treatments included in the financial disclosures.
C) the company's ability to limit production, if needed.
D) assigning responsibility for new accounting requirements.

Question

Quizplus · Accepted Answer

Earnings management is the practice of manipulating a company's financial statements to present a more favorable view of its financial performance. This can include accounting manipulations such as booking revenue prematurely, delaying expenses, or adjusting reserves to artificially inflate earnings.

Earnings Management Pertains To