"Cookie jar reserves" can best be described as:.A) Buying a lot of chocolate chip cookies, storing them for when you have a hunger attack, and then releasing them into your stomach B) Accelerating the recording of revenues into an earlier year than is warranted C) Overstating or understating allowances and reversing amounts in the future to smooth out net income over time D) Delaying the recording of expenses to a later year to boost income in the current year

C) Overstating or understating allowances and reversing amounts in the future to smooth out net income over time.

Explanation:

Cookie jar reserve is defined as an accounting practice by businesses where the profit a company makes from successful years are reserved to cover up for years with losses. It balances losses from unsuccessful years.

Investors are led to believe that losses in bad years are less than they actually are.

For example not allocating an expense to a particular accounting year but instead allocating it to a year when the company made profits.

In essence it is overstating or understating allowances and reversing amounts in the future to smooth out net income over time.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi