One definition of earnings management is that it occurs when managers use

• A. judgment in financial reporting to alter financial reports to mislead stakeholder.

• B. an accounting method that is inconsistent with other industry members.

• C. more conservative accounting estimates than other companies.

• D. pro forma accounting results as opposed to GAAP results.

Firm's choices and estimates within U.S. GAAP should be determined by

• A. how the industry operates.

• B. the firm's underlying economic circumstances.

• C. SEC interpretations regarding specific choices.

• D. the firm's auditor.