Question 33 One definition of earnings management is that it occurs when managers use: Select one A. judgment in financial reporting to alter financial reports to mislead stakeholders. 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. Question 34 Equity valuation models based on dividends, cash flows, and earnings have been the topic of many theoretical and empirical research studies in recent years. All of the following are true regarding these studies except: Select one A. Share prices in the capital markets generally correlate closely with share value. B. Share prices do not always equal share values. OC. Temporary deviations of price from value occur. D. Unexpected changes in earnings, dividends, and cash flows do not correlate closely with changes in stock prices