Examples of Poor Earnings Quality That Hinder the Forecasting of Expected

question 14

Multiple Choice

Examples of poor earnings quality that hinder the forecasting of expected future earnings include all of the following except:

• A) Earnings dominated by a substantial one-time gains from the sale of real estate tangential to the firm's operations.
• B) Reporting a large expense from a warehouse fire that was not covered by insurance.
• C) A local government corrects a processing error and a firm receives an unexpected rebate on property taxes previously paid.
• D) The company adds equipment that reduces carbon emissions in response to EPA requirements and increases production efficiency.

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Definitions:

Prescribes

involves recommending a course of action or establishing rules or guidelines to be followed.

Subordinates

Employees or team members who report to a higher-ranking individual or manager within an organization.

Initiating Structure

Leadership behavior characterized by the organization of work, establishment of clear objectives, and the distribution of tasks among team members.

Defines

Defines refers to specifying or explaining the meaning of words, phrases, or concepts.