Question 21

• 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?A.Warren Buffet
• B.Arthur Levitt
• C.Thomas E. McKee
• D.Lynn Turner

Question 22

• Which of the following is NOT a motivation to manage earnings?
• A.Companies try to meet or beat Wall Street earnings projections in order to grow market capitalization and increase the value of stock options
• B.Avoid the consequences of violating debt covenants
• C.To smooth net income over time
• D.To maximize employee bonuses