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Wizard Company distributed cruise packages to its top ten sales teams across the country, and wrote off the cost of the cruises over two years.
Wizard Company distributed cruise packages to its top ten sales teams across the country, and wrote off the cost of the cruises over two years.
Based on the information given to you, which of the earnings management (or manipulation) practices applies to Wizard Company in this example?
a. Capitalizing expenses associated with the purchase of fixed assets
b. Extending the depreciable life of long-term assets
c. Capitalizing normal operating expenses
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