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

Question

Quizplus · Accepted Answer

The "cookie jar reserves" technique involves decreasing earnings in the current period by setting aside reserves, which can be used to increase earnings in future periods when needed.

The "Cookie Jar Reserves" Earnings Management Technique Involves ________