Question: Match each case study with the right earnings management method A company moved maintenance expense from operating expenses to non-operating section in the income statement

Match each case study with the right earnings management method

A company moved maintenance expense from operating expenses to non-operating section in the income statement although the company know that maintenance is needed continuously.

 Answer 1Choose...Accrual based earnings managementClassification shiftingReal earnings management

A company decided to reduce their research an development expense to increase their net income.

 Answer 2Choose...Accrual based earnings managementClassification shiftingReal earnings management

A company decided to underestimate the estimated bad debts amounts to provide a better performance to the investors.

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