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Which of the following statements is false? Reserve accounts have a legitimate place in the recording of transactions under the accrual basis of accounting. Arthur

image text in transcribed Which of the following statements is false? Reserve accounts have a legitimate place in the recording of transactions under the accrual basis of accounting. Arthur Levitt, former SEC chairman, was concerned about the abuse of reserve accounts. Reserve accounts can be used to smooth out earnings from year to year. Reserve accounts are illegal accounts used to play the "cookie jar game

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