- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 14. Evaluating Quality of Financial Reports
- Subject 2. Evaluating the Quality of Financial Reports
CFA Practice Question
Which M-Score in the Beneish model signals the most likely candidate of manipulating earnings?
B. -2.20
C. -3.45
A. -1.38
B. -2.20
C. -3.45
Correct Answer: A
Higher M-scores indicate an increased probability of earnings manipulation.
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