21) Which of the following may indicate a company is manipulating earnings by creating a cookie jar reserve?
A) higher than usual revenues for the year
B) lower than usual expenses for the year
C) higher than usual estimated warranty liability at yearend
D) lower than usual payables at yearend
22) The cookie-jar-reserve theory is the type of manipulation where management maximizes a current loss to get rid of expenses that belong on future income statements.
23) Recognizing revenue that belongs in future accounting periods is the type of manipulation where management maximizes its earnings to meet analysts' expectations.
24) The big bath theory is the type of manipulation where management maximizes a current loss to get rid of expenses that belong on future income statements.
25) Higher than usual earnings implies the company may be recognizing revenues early.
26) Higher than usual expenses may indicate a company is manipulating earnings using big bath charges.
27) Lower than usual expenses may indicate a company is manipulating earnings using big bath charges.
28) A lower than usual allowance for uncollectible accounts may indicate a company is manipulating earnings using big bath charges.
29) A higher than usual allowance for uncollectible accounts may indicate a company is manipulating earnings using a cookie jar reserve.
30) A higher than usual estimated warranty liability may indicate a company is manipulating earnings using a cookie jar reserve.