This type of manipulation is known as "cookie jar" accounting:
A)Manipulation of profits through reserves or provisions
B)Incorrect classification of long term debt as equity
C)Incorrect classification of regular expenses as extraordinary items
D)Manipulation of profits through booking revenue in early periods
E)Manipulation of reserve for uncollectible amounts

Question

Quizplus · Accepted Answer

"Cookie jar" accounting refers to the manipulation of profits through reserves or provisions. This is done by creating excess reserves in good years to use in bad years, which artificially inflates profits in those years.

This Type of Manipulation Is Known as "Cookie Jar" Accounting