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    Business
  3. Study Set
    Advanced Financial Accounting
  4. Exam
    Exam 1: Setting the Stage
  5. Question
    What Is Often the Main Motivation Behind the Practice of Taking
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What Is Often the Main Motivation Behind the Practice of Taking

Question 1

Question 1

Multiple Choice

What is often the main motivation behind the practice of taking a "big bath" in a loss year?


A) To minimize income taxes
B) To smooth income
C) To maximize asset book values
D) To increase future years' earnings

Correct Answer:

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