Multiple Choice
Which of the following is NOT a motivation to manage earnings?
A) Companies try to meet or beat Wall Street earnings projections in order to grow market capitalization and increase the value of stock options.
B) The ideal pattern of earnings is volatility each year over a period of time.
C) To smooth net income over time.
D) To maximize compensation including bonuses.
Correct Answer:

Verified
Correct Answer:
Verified
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