What is The Definition of Earnings Management?
Earnings management accounting techniques are used to present financial statements that present a very positive picture of a company's business and financial condition. Many accounting rules and regulations require the management of a company to make decisions based on these rules. Earnings management benefits from the application of accounting rules and prepares financial reports that increase or smooth profits.
- In accounting, managing earnings is a way of manipulating financial records to improve the appearance of a company's finances.
- Companies use revenue management to provide a consistent view of revenue and management fluctuations.
- One of the most popular ways to manipulate financial records is to use accounting policies that result in more short-term returns.
Literal Meanings of Earnings Management
Meanings of Earnings:
Charges for work or services.
Sentences of Earnings
Claim compensation for lost profits
Synonyms of Earnings
pay, income, gross pay, wages, take-home pay, net pay, stipend, salary
Meanings of Management:
The process of treating or controlling someone else.
Sentences of Management
Deer herd management
Synonyms of Management
administration, falsity, supervision, duplicity, governing, deceit, deception, untruthfulness, lying, running, management, falsehood, direction, control, falseness