Taking a "big bath" is recording all losses in one year to make a bad year even worse.

Name: Taking a "big bath" is recording all losses in one year to make a bad year even worse.
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Question

Quizplus · Accepted Answer

Taking a "big bath" is a common accounting practice where a company records all of its losses in one year to make that year look particularly bad. The idea is that it will make future years' profits look even better by comparison. It can also be used to write off large amounts of debt or restructure a company's assets.

Taking a "Big Bath" Is Recording All Losses in One