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Basic Question 5 of 11
Which of the following factors are related to rationalizations?
II. Management's excessive interest in maintaining or increasing a firm's stock price
III. Management failing to correct known reportable conditions on a timely basis
IV. Employing inappropriate means to minimize earnings for tax purposes
V. Failure to effectively communicate a firm's ethical standards
I. Significant estimates and subjective judgment in accounting for assets, liabilities, revenues and expenses
II. Management's excessive interest in maintaining or increasing a firm's stock price
III. Management failing to correct known reportable conditions on a timely basis
IV. Employing inappropriate means to minimize earnings for tax purposes
V. Failure to effectively communicate a firm's ethical standards
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
describe motivations that might cause management to issue financial reports that are not high quality and conditions that are conducive to issuing low-quality, or even fraudulent, financial reports
describe mechanisms that discipline financial reporting quality and the potential limitations of those mechanisms
CFA® 2024 Level I Curriculum, Volume 3, Module 10.