The practice of shifting income from good years to poor years in order to show a record of steady growth is
A) is known as earnings management and is considered unethical.
B) is highly recommended but not required by GAAP.
C) is a basic requirement of accrual accounting.
D) is impossible if Generally Accepted Accounting Principles are followed.

Question

Quizplus · Accepted Answer

The practice of shifting income from good years to poor years in order to show a record of steady growth is known as earnings management. This practice is considered unethical and is not allowed under Generally Accepted Accounting Principles.

The Practice of Shifting Income from Good Years to Poor