Intermediate Accounting, 17th Edition
Intermediate Accounting, 17th Edition
17th Edition
ISBN: 9781119503682
Author: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Publisher: WILEY
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Chapter 4, Problem 7Q
To determine

Earnings management: A process of defining the time of receiving the revenue, paying the expenses and incurring or accepting the loss or asset is termed earnings management. This process helps the management to increase its current year income by postponing the expenses to future and vice versa. This is possible only if the company has made an efficient plan of income.

To determine the way in which the quality of earnings of a company gets affected.

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