Healy and Wahlen ( 1 9 9 9 ) state that earnings management occurs when managers use judgment in financial reporting and structuring transactions to alter financial reports for the purpose of misleading stakeholders Which of the following is not an example of earnings management a Underreporting of a bad debt provision to increase a manager's bonus b Misclassification of a current liability as long term to increase the current ratio c Taking accelerated depreciation on property, plant, and equipment to obtain favorable terms in a labor negotiation when straight line is more appropriate d Delay of required maintenance to increase reported income

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Question: Healy and Wahlen ( 1 9 9 9 ) state that earnings management occurs when managers use judgment in financial reporting and structuring transactions to

Healy and Wahlen

(1999)

state that "earnings management occurs when managers use judgment in financial reporting and structuring transactions to alter financial reports" for the purpose of misleading stakeholders. Which of the following is not an example of earnings management?

.

Underreporting of a bad debt provision to increase a manager's bonus

.

Misclassification of a current liability as long term to increase the current ratio

.

Taking accelerated depreciation on property, plant, and equipment to obtain favorable terms in a labor negotiation when straight

-

line is more appropriate

.

Delay of required maintenance to increase reported income

Healy and Wahlen ( 1 9 9 9 ) state that "earnings

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