The "cookie jar reserves" earnings management technique involves increasing earnings so as to increase managers' compensation.

Name: The "cookie jar reserves" earnings management technique involves increasing earnings so as to increase managers' compensation.
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Question

Quizplus · Accepted Answer

The "cookie jar reserves" technique involves decreasing earnings in good years by setting aside reserves, which can be used to increase earnings in bad years, not directly to increase managers' compensation.

The "Cookie Jar Reserves" Earnings Management Technique Involves Increasing Earnings