Define accrual-based earnings management

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Q1) Define 'accrual-based earnings management' and 'real earnings management'. Identify and explain at least three specific methods that a firm may use to implement each form of earnings manipulation.

Q2) Identify and explain the three general motivations for earnings management. For each general motivation, cite an example of a specific reason why a manager might wish to manipulate earnings and identify the direction of earnings management that would be consistent with the manager's objectives.

Reference no: EM132902625

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