182k views
4 votes
Earnings management is a controversial practice in which corporations ________ or ___________ their earnings to "smooth out" dips and surges and keep investors calm

1 Answer

7 votes

Answer: overstate; understate

Step-by-step explanation:

Earnings management is a controversial practice in which corporations overstate or understate their earnings to "smooth out" dips and surges and keep investors calm.

This is a controversial practice because the true reflection of the corporation is not shown and it's an ethical issue in business.

User Slawa
by
8.9k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories