Methods to Manipulate Earnings in Management: Explained | Test Prep

Methods to Manipulate Earnings in Management

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One method management can "manipulate" earnings is by

A. reporting a gain on the sale of subsidiary when the operating income of the firm is showing a loss.

B. changing from LIFO to any other inventory valuation method.

C. reporting the full amount of anticipated restructuring costs.

D. changing from the percentage-of-completion method.

E. reporting additional losses in bad years, assuming future reported profits will increase.

Click on the arrows to vote for the correct answer

A. B. C. D. E.

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