QUESTION 27 2 points Earnings management is often motivated by: O a. IFRS standards b.Compliance with GAAP OC Desire to disguise poor performance Od. Strong economic conditions 2 points Save Awwer QUESTION 28 What is the effect on the financial statements when a company fails to adjust the prepaid insurance expense account at year-end for insurance coverage that has been used? Net income is overstated and stockholders' equity is understated Expenses are understated and stockholders' equity is understated Net income is overstated and assets are overstated Expenses are understated and net income is understated