Managements' ability to manipulate net income through deliberate choices regarding revenue recognition and cost is known as:
A)cash management
B)earnings management
C)income management
D)income measurement

Question

Quizplus · Accepted Answer

Earnings management refers to the practice of selectively choosing accounting methods and estimates in order to meet or exceed earnings expectations. This can involve manipulating revenue recognition, delaying or accelerating expenses, or taking advantage of accounting loopholes to boost earnings. While some forms of earnings management may be legal, others can be unethical or even fraudulent.

Managements' Ability to Manipulate Net Income Through Deliberate Choices Regarding