Which of the following is not a techniques that banks use to "manage earnings"?
A) Window dressing
B) Nonrecurring sales of assets
C) Adjusting the allowance for loan losses
D) Increasing loans classified as non-performing
E) All of the above are techniques that banks use to "manage earnings"

Question

Quizplus · Accepted Answer

Increasing loans classified as non-performing would actually decrease earnings, as it would signal potential loan losses and decrease the bank's overall asset value. Therefore, this option is not a technique that banks would use to manage earnings.

Which of the Following Is Not a Techniques That Banks