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A Company Showed a Large Restructuring Charge on Its Income

Question 1

Multiple Choice

A Company showed a large restructuring charge on its income statement in 2011 and has experienced a constantly rising earnings trend since that time. This would most nearly represent an example of


A) cookie jar reserves.
B) creative acquisition accounting.
C) big bath accounting.
D) using immaterial transactions to increase reported earnings to meet analysts' expectations.

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