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 Which of the following is not considered a motive to manage earnings? a

Accounting

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1.  Which of the following is not considered a motive to manage earnings?
   a. To create optimal manager compensation payments.
   b. To create optimal job security for senior management.
   c. To create optimal measures of assets and liabilities for balance sheet purposes.
   d. To manage reported earnings in order to reduce industry-specific actions.
2. 7. One definition of earnings management is that it occurs when managers use:
   a. Judgement in financial reporting to alter financial reports to mislead stakeholders.
   b. an accounting method that is inconsistent w/ other industry members
   c. more conservative accounting estimates than other companies
   d. pro forma accounting results as opposed to GAAP results
3. 8. Earnings that are high quality would:
4. 9. Accounting information should provide a fair and complete representation about a number of a firm's characteristics. Which of the following is not one of those characteristics?
   a. Risk
   b. Position
   c. Performance
   d. Conservatism
5. 10. List two incentives that managers have to manage earnings upward?
6. 11. Provide two incentives that managers have to manage earnings downward
7. 12. Waste Management: Falsely increased the useful lives of long-lived assets.
   
   Identify how the B/S and earnings quality were impaired:
8. 12. Enron: Under-reported balance sheet long-term debt.
   
   Identify how the B/S and earnings quality were impaired:
9. 12. WorldCom: Capitalized rather than expensed expenditures to maintain transmission lines.
   
   Identify how the B/S and earnings quality were impaired:
10. 12. AIG: Booked debt as revenue.
    
    Identify how the B/S and earnings quality were impaired: