Big Bath

Business, Legal & Accounting Glossary

Definition: Big Bath


Big Bath


Full Definition of Big Bath


The process of manipulating a company’s earnings to make them appear worse than they truly are. Losses are expanded so that the company can mislead investors and shareholders. Big bath accounting reduces the amount of assets held by the company so that future quarterly performance will appear better than it truly is. This type of procedure is typically used during a bad year. For example, a company may elevate sales declines to a level that will help future losses appear minimal.


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Big Bath. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 29, 2024 https://payrollheaven.com/define/big-bath/.
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Big Bath. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/big-bath/ (accessed: March 29, 2024).
American Psychological Association (APA):
Big Bath. PayrollHeaven.com. Retrieved March 29, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/big-bath/

Definition Sources


Definitions for Big Bath are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.