Soft charges or anticipated costs:
A) Are a source of cookie jar reserves.
B) Are the same as EBITDA.
C) Are never used in acquisition accounting.
D) All of the above

Question

Quizplus · Accepted Answer

Soft charges or anticipated costs are a source of cookie jar reserves, which are reserves set aside for future expenses or losses. They are not the same as EBITDA, which is an earnings metric. Soft charges can also be used in acquisition accounting, for example, to account for potential liabilities or expenses associated with the acquisition.

Soft Charges or Anticipated Costs