Question

Earnings management is usually considered to be________

when the company is purposefully providing mis-stated or inaccurate financial information.

Answer 1

Earnings management is usually considered to be **manipulative or deceptive** when the company is purposefully providing mis-stated or inaccurate financial information. This practice may involve the intentional manipulation of accounting methods or financial disclosures to present a more favorable picture of the company’s financial performance than what is true.