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Week 2 dq 1 earnings management

  

Week 2 DQ 1 Earnings Management

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Judgment Case 4-3 p. 225

Companies often are under pressure to meet or beat Wall Street earnings projections in order to increase stock prices and also to increase the value of stock options. Some resort to earnings management practices to artificially create desired results.

Required:

Is earnings management always intended to produce higher income? Explain.

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