Which of the following is not usually a motivating factor for management to manage earnings?
A) present earnings in a smooth and upward trend
B) to meet desired profit goals
C) to meet a regulatory requirement to manage earnings
D) to avoid reporting a loss for a particular accounting period

Question

Quizplus · Accepted Answer

Management typically manages earnings to present financial results in a favorable light, such as smoothing earnings, meeting profit goals, or avoiding losses. There is no regulatory requirement to manage earnings; in fact, regulations often aim to prevent such practices.

Which of the Following Is Not Usually a Motivating Factor