Which of the following choices is NOT a common method used by management to manipulate earnings?

Question

Answer

Adjust the timing of costs so that earnings are increased in bad years and decreased in good years, thereby smoothing earnings.

Answer

Make financing costs appear to be operating expenses, so that they will not affect net income from continuing operations.

Answer

Adjust the timing of costs so that earnings are further decreased in bad years.

Answer

Make losses appear to be extraordinary so that they will not affect income from continuing operations.

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