Nickolas's Pizza intentionally overestimates the amount of its write-downs of assets in order to record a nonrecurring loss in a period of already depressed income.
What is this behavior called?
A) Restructuring costs
B) Big Bath
C) Arm's length sales
D) Income smoothing

Question

Quizplus · Accepted Answer

Behavior such as this is referred to as a "big bath".

Nickolas's Pizza Intentionally Overestimates the Amount of Its Write-Downs of Assets