Income smoothing is a financial strategy employed by companies to reduce fluctuations in reported earnings, thereby presenting a more stable financial performance over time. This practice involves the manipulation of accounting policies or estimates to level out profits and losses. While not inherently illegal, it can raise ethical concerns if it misleads stakeholders. What is income smoothing? It is a technique often scrutinized in financial reporting.
CMA Prep Course
CMA Exam Academy is a proven, 16-week per part online coaching program to help you pass the CMA. The Academy’s comprehensive curriculum will help you pass the CMA exam and achieve your dreams of earning 6-figures per year, ascend to the executive ranks and earn the respect from your peers.
