1)Which of the following is NOT an earnings management technique?

a)Failing to record expenses and related liabilities when future obligations remain

b)Failing to write down or write off impaired assets

c)Creating an allowance for uncollectible accounts and adjusting it at year end

d)Releasing questionable reserves into income

2)Your professor asks you to consider whether earnings management can be justified by arguing that the net benefits of managing earnings exceeds any harms that may occur. The professor is asking you to apply what reasoning methods to make the analysis?

a)Act utilitarianism

b)Virtue

c)Rule utilitarianism

d)Egoism