1)Needles suggests that making judgments about what earnings management is becomes difficult because:

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a)It depends on management's intentions

b)There is no clear limit beyond which a choice is clearly unethical

c)A perfectly routine accounting estimate may be illegal and unethical

d)All of the above

2)The main accounting issues in the Nortel Networks case were:

a)Capitalization of operating expenses and off-balance-sheet entities

b)Capitalization of operating expenses and hidden cash reserves

c)Premature revenue recognition and off-balance-sheet entities

d)Premature revenue recognition and hidden cash reserves