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Which of the following statements is TRUE ? 1. Earnings management (EM) is less likely when the financial reports are used solely for reporting purposes
Which of the following statements is TRUE?
1. | Earnings management (EM) is less likely when the financial reports are used solely for reporting purposes and not for other purposes | |
2. | Earnings management (EM) is less likely when there has been a change in accounting principles or estimates | |
3. | Earnings management (EM) is less likely when the firm has been experiencing constant or falling sales | |
4. | Earnings management (EM) is less likely when the firms governance structure is weak |
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