Recognizing More Bad Debt Expense in a Year Than Is

question 43

Multiple Choice

Recognizing more bad debt expense in a year than is necessary in order to have flexibility in recognizing bad debt expense in a future year is an example of

• A) a big bath charge.
• B) a cookie jar reserve.
• C) creative acquisition accounting.
• D) premature recognition of revenue.

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Definitions:

Evolutionary Stable Strategy

A strategy in a game theoretical model that cannot be invaded by any alternate strategy if it is adopted by a population.

Saints

Individuals recognized for their holiness, virtue, and often miraculous deeds within many religious traditions, revered and often canonized after death.

Crooks

Persons who are dishonest or engage in illegal activities.

Time-Discounted Profits

The present value of profits expected in the future, adjusted for the time value of money.