Deferring the recognition of revenue for which the earnings process is complete is an example of
A) "big bath" accounting.
B) strategic matching.
C) a change in an accounting estimate.
D) a "cookie jar" reserve.

Question

Quizplus · Accepted Answer

Deferring revenue recognition when the earnings process is complete creates a reserve that can be used to smooth earnings in future periods, which is known as a "cookie jar" reserve.

Deferring the Recognition of Revenue for Which the Earnings Process