Question: note:not option 1 A Question 13 (5 points) Retake question M-score=4.84+0.920(DSR)+0.528(GMI)+0.404(AQI)+0.892(SGI)+0.115(DEPI)0.172(SGAI)+4.679(Accruals)0.327(LEVI) The above equation is the Beneish Model. Select the statement that is most accurate.

note:not option 1

A Question 13 (5 points) Retake question M-score=4.84+0.920(DSR)+0.528(GMI)+0.404(AQI)+0.892(SGI)+0.115(DEPI)0.172(SGAI)+4.679(Accruals)0.327(LEVI) The above equation is the Beneish Model. Select the statement that is most accurate. The GMI term stand for gross margin index. This term indicates that if a firm has strengthening gross margins then it is more likely to manipulate its earnings. The coefficient or weight of each term will be different for each company when we apply the Beneish Model. The Beneish Model quantifies the probability that a firm is engaging in misreporting, with the use of accounting accruals being the most important factor

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