What is The Meaning of Income Smoothing?
Income Smoothing means: The smoothing of revenue is used to account for the fluctuations in net income from one period to another. Companies follow this practice because investors are generally willing to pay a premium for shares of regular and predictable profits, compared to stocks whose profits are subject to a more stable pattern. Which can be considered more dangerous.
- Accounting policies are used to offset fluctuations in net income from different reporting periods in smoothing revenue.
- Smooth revenue transfers income and expenses from one accounting period to another.
- While this is legal, if the GAAP guidelines are followed, tax evasion can be done fraudulently.
- Reasons to equalize revenue include tax cuts, attracting investors and business strategy.
Literal Meanings of Income Smoothing
Meanings of Income:
Regular payments are made for work or through private investment
Sentences of Income
Have a nice home and a good income
Synonyms of Income
earnings, salary, pay, remuneration, wages, stipend, emolument
Meanings of Smoothing:
It has a flat, flat surface with no visible protrusions, protobrances or cracks.
(Action, event or process) without any hassle or difficulty.
(A person or their customs) are charming with love in a way that can be considered false.
(Eating and drinking) without any violence or bitterness.
(Some) Give a flat, surface shape or surface.
Working successfully (problems or difficulties)
Without any difficulty
Sentences of Smoothing
Smooth and smooth rock
The trucks are moving smoothly
The group's expansion into the US market was not smooth
Her voice is very sweet
A beautiful, sweet and very fruitful wine
He filled the newspaper
This problem of teaching has been solved
The journey of true love never goes well
Synonyms of Smoothing
even, level, flat, as flat as a pancake, plane, flush, unwrinkled, featureless, straightforward, easy, effortless, trouble-free, untroubled, well ordered, simple, suave, urbane, sophisticated, polished, debonair, courteous, gracious, smooth-tongued, glib, media-savvy