A "big bath"
A)often occurs in years when there is a change in management.
B)occurs in the current year so management can show improved results in future years.
C)is often an indication of poor management decisions in the past.
D)All of these choices.

Question

Quizplus · Accepted Answer

A "big bath" refers to a company taking a significant hit to its earnings in a given year in order to improve its financial performance in the future. This technique is often used when there is a change in management or poor management decisions in the past. Therefore, all of the choices are correct.

A "Big Bath