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    Exam 1: The Framework for Financial Reporting
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    Give Two Reasons Why Managers May Have a Bias Toward
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Give Two Reasons Why Managers May Have a Bias Toward

Question 72

Question 72

Essay

Give two reasons why managers may have a bias toward smoothing earnings, and give two examples stating how this is achieved in practice.

Correct Answer:

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Income smoothing is performed:
a. To red...

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