A Company Showed a Large Restructuring Charge on Its Income

question 5

Multiple Choice

A Company showed a large restructuring charge on its income statement in 2014 and has experienced a constantly rising earnings trend since that time.This would most nearly represent an example of

• A) cookie jar reserves.
• B) big bath accounting.
• C) creative acquisition accounting.
• D) using immaterial transactions to increase reported earnings to meet analysts' expectations.