"Cookie Jar Accounting

question 4

Multiple Choice

"Cookie jar accounting":

• A) Always sweetens, or increases, a company's reported profits, as its name suggests
• B) Sets aside questionable but desirable items in a jar, so to speak, and reports conservative results
• C) Allows a firm to manipulate the trend in its earnings, making earnings less volatile
• D) Allows a firm to boost its long-run, total reported earnings from a financial accounting perspective

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