Question
The practice of not reporting a portion of earnings in good years through creating reserves or earnings banks, and then reporting these earnings in bad
The practice of not reporting a portion of earnings in good years through creating reserves or earnings "banks," and then reporting these earnings in bad years is referred to as:
a. Income smoothing
b. Big bath accounting
c. Neither A or B
d. Either A or B
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Fundamentals Of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
16th Edition
0357517571, 978-0357517574
