Which of the following is NOT considered "earnings management"?
A)"Earnings management" is to project smoother earnings from year to year.
B)Managements emphasis on achieving long-term results to meet their financial goals.
C)A common practice of "earnings management" is to use "cookie-jar reserves."
D)The executives manipulate the earnings in order to match their predetermined target.

Question

Quizplus · Accepted Answer

Emphasizing on achieving long-term results is not considered "earnings management." It can be a legitimate strategy to meet the financial goals of a company. However, practices like projecting smoother earnings, using cookie-jar reserves, and manipulating earnings to meet predetermined targets can be considered earnings management.

Which of the Following Is NOT Considered "Earnings Management