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Section III Earnings Management (20 Points) Earnings management can be defined as the
"purposeful intervention by management in the earnings process, usually to satisfy selfish
objectives" (Schipper, 1989). Earnings management techniques can be separated into those that
are "cosmetic" (without cash flow consequences) and those that are "real" (with cash flow
consequences). The management of a company wishes to increase earnings this period. List
three "cosmetic" and three "real" techniques that can be used to achieve this objective and explain
why they will achieve the objective.

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