Which of the following is not considered a motive to manage earnings?
A) To create optimal manager compensation payments
B) To create optimal job security for senior management
C) To create optimal measures of assets and liabilities for balance sheet purposes
D) To manage reported earnings in order to reduce industry-specific actions

Question

Quizplus · Accepted Answer

While managing reported earnings can impact how assets and liabilities are measured on the balance sheet, it is not considered a primary motive for managing earnings. A, B, and D are all common motives for managing earnings.

Which of the Following Is Not Considered a Motive to Manage