Which of the following actions would be examples of real earnings management? (check all that apply) a)
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Question:
Which of the following actions would be examples of “real earnings management”? (check all that apply)
a) Delay a new R&D program to the next period
b) Capitalize a higher percentage of cash costs during this period (i.e., spend the same in cash costs, but capitalize more of them as an asset this period)
c) Reduce the expected percentage of this period’s sales that will be uncollectible
d) Reduce advertising spending in the current period
e) Cut spending on employee training this period
Related Book For
Accounting for Governmental and Nonprofit Entities
ISBN: ?978-0073379609
15th Edition
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
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