Which of the following IS an example of an accounting-based earnings management (EM) strategy designed to increase reported earnings? 1. Reducing expenditures on R&D 2. Unusually high deferred revenues 3. Failing to take the appropriate impairment charge on property, plant and equipment 4. Unusually low cash flow from operations

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 16MC: Which of the following is true about earnings management? A. It works within the constraints of...
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Which of the following IS an example of an accounting-based earnings management (EM) strategy designed to increase reported earnings?

  1.

Reducing expenditures on R&D

  2.

Unusually high deferred revenues

  3.

Failing to take the appropriate impairment charge on property, plant and equipment

  4.

Unusually low cash flow from operations

 

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