Ethical Obligations and Decision-Making in Accounting 2nd Edition by Steven Mintz, Roselyn Morris

Exercise 2

Can earnings management be an ethical practice? Discuss why or why not. Give an example of when it might be ethical.

Step 1 of 2

Accounting:

Accounting is the process of recording, classifying, summarizing business transactions in a systematic manner.

Accounting policy:

The accounting policy is a specific principle, guidelines rule, system and practices applied by the organization in preparing the financial statement. It is a decision made by an organization in advance how, when, where and whether record and recognized entity.