The "Cookie Jar Reserves" Earnings Management Technique Involves ________

question 92

Multiple Choice

The "cookie jar reserves" earnings management technique involves ________.

• A) increasing earnings in the current period in anticipation of significant future decreases
• B) decreasing earnings in the current period in anticipation of significant future increases in earnings
• C) increasing earnings so as to increase managers' compensation
• D) increasing losses in the current period to allow the firm to show increased net losses in the future

---

Definitions:

Social Psychological

Pertaining to the scientific study of how individuals think, feel, and behave in social contexts.

Norman Triplett

An American psychologist known for his work on social facilitation and considered a pioneer in the field of social psychology.

Deindividuation

A psychological state where an individual loses their sense of self-identity and personal responsibility, often leading to behavior that is uncharacteristic or norm-violating when in a group.

Student Protest

Refers to demonstrations or movements initiated by students to voice their opposition to certain policies, actions, or societal issues.