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19. Income smoothing refers to: (a) the ability of management to report an earnings amount in each period less than actual earnings; (b) the ability
19. Income smoothing refers to:
(a) the ability of management to report an earnings amount in each period less than actual earnings;
(b) the ability of management to use accruals to reduce the volatility of reported earnings over time;
(c) the ability of management to maintain sales to its current customers for several years; or
(d) the ability of management to report an earnings amount in each period greater than actual earnings.
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