Question
Which of the following statements about earnings management is FALSE? A. If accruals are overstated by earnings management this year, they will be understated in
- Which of the following statements about earnings management is FALSE?
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| A. | If accruals are overstated by earnings management this year, they will be understated in future periods |
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| B. | A decline in total asset turnover always means accrual-based earnings management is occurring |
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| C. | Accruals are generally easier to manipulate than cash flows |
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| D. | Accrual-based earnings management is reflected in unusual changes in net operating assets |
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| E. | Fear of violating a debt covenant can motivate earnings management |
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Advanced Quality Auditing
Authors: Lance B. Coleman
1st Edition
087389913X, 978-0873899130
