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As Lorien is preparing the end of year financial statements, she realizes that the earnings are not quite high enough to justify the large loan

As Lorien is preparing the end of year financial statements, she realizes that the earnings are not quite high enough to justify the large loan application that is being currently processed. She decides to stretch the assumptions just enough to be able to meet the requirements for the loan application. This is an example of:

Income smoothing

Meeting external expectations

Meeting internal targets

Window dressing

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