- CFA Exams
- CFA Level I Exam
- Study Session 9. Financial Reporting and Analysis (4)
- Reading 29. Financial Reporting Quality
- Subject 3. Context for Assessing Financial Reporting Quality
CFA Practice Question
Which of the following will most likely be an incentive for management to underreport earnings?
A. Meeting analysts' expectations
B. Meeting restrictive debt covenants
C. Contract negotiations with unions
Explanation: Management is most likely to try to report lower earnings when negotiating concessions from a union.
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