Primary navigation:

QFINANCE Quick Links
QFINANCE Topics
QFINANCE Reference
Add the QFINANCE search widget to your website

Home > QFINANCE Dictionary > Definition of income smoothing

Definition of

income smoothing

Accounting

accounting method to make income appear steady a form of creative accounting that involves the manipulation of a company's financial statements to show steady annual profits rather than large fluctuations

income smoothing - Related Articles
  • Rigidity in Microfinancing: Can One Size Fit All?

    Best Practice

    Why is this important? Being poor is not just about having too little income—it is about having an insecure income. The income of the poor can vary dramatically from day to day, month to month, season to season. The poor have good weeks and bad weeks. But microloans, like all loans with fixed
    By Dean Karlan, Sendhil Mullainathan

  • US Financial Regulation: A Hopeless Tangle, or Complexity for a Purpose?

    Best Practice

    Every individual, enterprise, organization, or government requires finance, even if it is self-finance, to smooth income and expenditure flows, and to provide the basis for investment. The payments system of a modern economy—cash, checks, credit and debit cards, electronic transfers—involves finance
    By Lawrence J. White

  • Reinvesting in the Company versus Rewarding Investors with Distributions

    Best Practice

    Two numbers are relevant to understanding dividend policy: The level of the annual dividend (which may in practice be paid in quarterly or semi-annual installments), and the dividend payout ratio (the dividend for the year as a percentage of after-tax income). Stockholders are concerned
    By Ruth Bender

  • Insuring Against Business Interruption

    Checklists

    This checklist examines ways of insuring against loss of income arising from an enforced shutdown.

More

Definitions of ’income smoothing’ and meaning of ’income smoothing’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’income smoothing’ and other financial terms with our online QFINANCE Financial Dictionary.

Back to top

Related Blog Posts

More related Blog results