For which of the following purposes are cookie jar reserves primarily used?
A)Increasing reserves in less profitable years
B)Increasing profits in less profitable years
C)Decreasing expenses in profitable years
D)Decreasing the risk of non-payment of receivables

Question

Quizplus · Accepted Answer

Cookie jar reserves are primarily used to increase profits in less profitable years. This is done by setting aside excess funds during periods of profitability, which can be used to offset lower profits or losses in the future.

For Which of the Following Purposes Are Cookie Jar Reserves