This Type of Manipulation Is Known as "Cookie Jar" Accounting

question 4

Multiple Choice

This type of manipulation is known as "cookie jar" accounting:

• A)Manipulation of profits through reserves or provisions
• B)Incorrect classification of long term debt as equity
• C)Incorrect classification of regular expenses as extraordinary items
• D)Manipulation of profits through booking revenue in early periods
• E)Manipulation of reserve for uncollectible amounts

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Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Economic Efficiency

A state in which resources are optimally allocated to serve each person in the best way while minimizing waste and inefficiency.

Entry Barriers

Obstacles that make it difficult for new competitors to enter a market, including high startup costs, stringent regulations, and established brand loyalty.

Brand Loyalty

A customer's consistent preference for one brand over all others, often reflected in repeated purchases.