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 worse than it actually was. This can be done in order to make future performance look better in comparison or to get a tax benefit from the losses.

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