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Aliun [14]
4 years ago
10

Earnings management is a controversial practice in which corporations ________ or ___________ their earnings to "smooth out" dip

s and surges and keep investors calm
Business
1 answer:
Sladkaya [172]4 years ago
7 0

Answer: overstate; understate

Explanation:

Earnings management is a controversial practice in which corporations overstate or understate their earnings to "smooth out" dips and surges and keep investors calm.

This is a controversial practice because the true reflection of the corporation is not shown and it's an ethical issue in business.

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