All of the following are items that management could use to manage earnings except:
A)unearned revenue.
B)inventory purchases.
C)obsolete inventory.
D)useful life of assets.

Question

Quizplus · Accepted Answer

Inventory purchases are typically considered a part of the normal course of business operations rather than a method for managing earnings. Management can manage earnings through the timing of recognizing unearned revenue, writing off obsolete inventory, or changing the estimated useful life of assets, but inventory purchases themselves do not directly allow for earnings management in the same way.

All of the Following Are Items That Management Could Use