header bg

Scan QR code or get instant email to install app


During a period when net income is unexpectedly weak, managers who attempt to smooth earnings are most likely to:

A capitalize an expense.

Management may attempt to increase reported earnings in the current period by capitalizing an expense. Capitalizing a lease would decrease earnings in the current period compared to recording an operating lease. Classifying a nonrecurring gain as recurring income would not increase net income because it already includes nonrecurring gains.

Related Information


Leave a Reply

Your email address will not be published. Required fields are marked *