In this unit we learned to explain how accrual accounting can create opportunities for unethical distortion of performance, compare discretionary and non-discretionary accruals, describe some of the incentives that managers have to manipulate earnings, explain common methods used to inflate earnings, and describe the Beneish Model for measuring earnings quality. Lets extend the discussion by examining the practical implications of these concepts. What does it mean to say accruals are ‘‘self-reversing?’