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This question was created from coursera Earnings Management.docx


Could you please tell us the "CORRECT" ANSWERS for these questions? The answers show on this quiz are all WRONG! Thanks!


pUIIIL 1. Which of the following are possible motives for managers to manipulate their earnings lower (l.e.,
make reported earnings less than unmanaged earnings)?(check all that apply) I7 Government is investigating potential monopolistic practices by the company because of it high
levels of profitability l— Unmanaged earnings would fall below security analysts' forecasts of earnings [7 Congress is planning a vote on extending tax credits to company's industry due its poor recent
performance I— A potential competitor is deciding whether to introduce new products to compete with the company’s
product line and will do so only if it thinks the company is making huge profits |_ Company is close to violating a debt covenant on its public bond issue because of low earnings

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