When a Company Makes a Very Large One-Time Write Off

question 33

Multiple Choice

When a company makes a very large one-time write off, it's said to take a(n) :

• A) Aggressive accounting position.
• B) Big bath.
• C) Earnings smoothing approach.
• D) Legitimate discretion approach.

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Definitions:

Indirect Quote

A way of quoting exchange rates in foreign exchange markets, representing the amount of foreign currency required to buy one unit of the domestic currency.

Direct Quote

A direct quote is a foreign exchange rate expressed in terms of how much of the domestic currency is required to buy one unit of the foreign currency.

British Pounds

The official currency of the United Kingdom, denominated as GBP (Great British Pound).

Exchange Rate

The price of one currency in terms of another currency.