How earnings management can best be described as

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Question 1: Earnings management can best be described as

a) Improving the underlying earnings generating process so that the firm either generates more earnings or speeds up the earnings process.

b) Management's ability to turn a cash-basis accounting system, where cash is income, into an accrual accounting system, where earnings is income.

c) A deliberate attempt by management to change the estimates and judgements involved in the measurement of assets, liabilities, revenues, or expenses in order to achieve a certain earnings target.

d) Altering the presentation of the financial statements in order to put the most favorable elements first and the least favorable elements last.

Reference no: EM132508846

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