Accruals are potentially troublesome because: Multiple Choice They can lead to giving an unmodified audit opinion when it should have been modified They provide an opportunity to manage earnings through aggressive or more conservative estimations They always lead to fraud in financial statements They provide an opportunity to shift debt off the books by setting up an SPE Who linked earnings management to an excessive zeal to project smoother earnings from year to year that casts a pall over the quality of the underlying numbers? Multiple Choice Warren Buffet O Arthur Levit Thomas E. McKee O Lynn Turner What is the SEC's position on companies that communicate with investors on social media? Multiple Choice It is illegal to do so O It is legal so long as companies inform investors which outlets they intend to use It is legal so long as the postings are restricted to Facebook There are no limitations on companies communicating through social media Motivations to smooth net income over time include each of the following except: Multiple Choice O Maximize bonuses and stock option values Steady increase in earnings each year Minimize overall taxes Make it appear managers are doing better than they really are