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Earnings quality is defined as the degree of correlation between a company's accounting income and its economic income. Earnings management is defined as the attempt by corporate officers to influ-ence short-term reported income.

Can you describe and give a brief ex of accounting terminology such as:

a. Taking a bath;

b. Cookie jar reserves;

c. Improper revenue recognition?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M941010

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