Which of the following items of the earnings management continuum is in the correct order?
A) Strategic matching,change in methods or estimates with full disclosure,non-GAAP accounting
B) Change in methods or estimates with little or no disclosure,non-GAAP accounting,fictitious transactions
C) Strategic matching,change in methods or estimates with little of no disclosure,fictitious transactions
D) Change in methods or estimates with full disclosure,non-GAAP accounting,fictitious transactions

Question

Quizplus · Accepted Answer

The correct order of the earnings management continuum starts with less aggressive techniques, such as changes in methods or estimates with little or no disclosure, progresses to the use of non-GAAP accounting, and ends with the most aggressive and unethical practice, fictitious transactions. This progression reflects an increasing level of aggressiveness and potential to mislead stakeholders.

Which of the Following Items of the Earnings Management Continuum