Final answer:
Discretionary accruals are typically used to manage earnings, which involves smoothing out earnings or meeting targets through adjustments within the scope of accrual accounting.
Step-by-step explanation:
The typical motivation for discretionary accruals is to manage earnings. Discretionary accruals are accounting adjustments that management can use at their discretion. These adjustments are often made for the purpose of smoothing out earnings, meeting forecasts, or achieving performance targets. While accrual accounting is a legitimate and required part of Generally Accepted Accounting Principles (GAAP), the discretion comes into play in the timing and estimation involved in the accruals.
Examples include adjusting for doubtful accounts, warranty obligations, or the timing of revenue recognition. It's important to note that these adjustments should be done within the boundaries of ethical accounting standards, though this desire to manage earnings can sometimes lead to aggressive or even fraudulent accounting practices.