What is a big bath? Why might this practice help to achieve higher reported earnings?

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What is a “big bath”? Why might this practice help to achieve higher reported earnings?

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Intermediate Accounting

ISBN: 978-0071339476

Volume 1, 6th Edition

Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I

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Question Posted: Feb 17, 2015 07:28 AM

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What is a big bath? Why might this practice help to achieve higher reported earnings?

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A big bath occurs when a company in the year of an operating loss uses t...View the full answer

Intermediate Accounting

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