Question 19 Which of the following statements is FALSE? The "Big Bath" problem refers to over-estimation of large one-time charges such as restructuring expenses. Kellogg reports income statement in $US. Assume the foreign currency impact for Kellogg relates entirely to purchase of inputs from foreign vendors. As the $US strengthens versus the foreign currencies, it will increase Kellogg's reported Cost of Goods Sold. Pro forma earnings does not have to comply with GAAP. Over-estimation of sales allowance in good periods creates a "Cookie Jar Reserve