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The Possibility That the Capital Markets' Focus on Periodic Profits

Question 81

Multiple Choice

The possibility that the capital markets' focus on periodic profits may tempt a company's management to bend or even break accounting rules to inflate reported net income is an example of:


A) An ethical dilemma.
B) An accounting theory issue.
C) A technical accounting issue.
D) An auditor's responsibility to inform the SEC.

Correct Answer:

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