Income smoothing refers to: a. the ability of management to use accruals to reduce the volatility of reported earnings over time
. b. the ability of management to maintain sales to its current customers for several years. c. the ability of management to report an earnings amount in each period less than actual earnings. d. the ability of management to report an earnings amount in each period greater than actual earnings.
Answer: The correct answer is "a. the ability of management to use accruals to reduce the volatility of reported earnings over time.".
Explanation: Income smoothing refers to <u>the ability of management to use accruals to reduce the volatility of reported earnings over time.</u>
The smoothing of earnings is a practice that consists in reducing fluctuations in recognized income and, therefore, fluctuations in earnings. That is, the smoothing of earnings implies saving income in bonanza times to recognize them accountingly when income is meager.
<span>Women were able to find more employment on the in America during WW2, as many jobs typically staffed by men were being vacated due to the increased need for manpower in the military.</span>
The steps involved in Nikita's application for financial aid include the following: 1. Nikita creates an FSA ID. 2. Nikita fills out the FAFSA form online. 3.Nikita rechecks the information she provided and makes a few corrections. 4. Colleges Ask Nikita to verify the information in the FAFSA. 5. In about two weeks Nikita received a document called Student Aid Report. 6. Nikita received financial aid award letters from various colleges.<span />
