The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

COOKIE JAR ACCOUNTING Definition & Legal Meaning

Definition & Citations:

The practice of liberally interpreting, or manipulating, accounting rules in order to convey a stronger financial position. Smoothing income flows, reversing RESERVES, and capitalizing costs that should be expensed are forms of cookie jar accounting. Also known as COOKING THE BOOKS.


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