Which of the following techniques is NOT generally useful to smooth income

Question

Quizplus · Accepted Answer

Fair value accounting is not generally useful for income smoothing as it reflects the market value of assets and liabilities, which can be volatile and may not represent the true economic value of the company. Meanwhile, varying the provision for warranties and hedging of financial instruments can be used to smooth income as they can be used to manage expenses and revenues in a way that evens out fluctuations over time.

Which of the Following Techniques Is NOT Generally Useful to Smooth