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Which of the following statements best describes what is known as taking a bath, a pattern of earnings management? Increasing the amount spent on discretionary

image text in transcribed Which of the following statements best describes what is known as "taking a bath," a pattern of earnings management? Increasing the amount spent on discretionary expenditure such as research and development Using equity rather than loans to finance capital projects Adopting income-increasing accounting methods Writing down assets to reduce future expected costs if a firm is going to face a loss anyway

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