Many Times a Financial Analyst May Decide to Make Adjustments

question 29

Multiple Choice

Many times a financial analyst may decide to make adjustments to the financial statements in order to make the statements more useful.Which of the following would not require an adjustment to the financial statement?

• A) A company signs a new contract with a customer.
• B) A delivery company incurs a loss from disposition of used delivery trucks.
• C) A company changes the useful life of its equipment from 5 years to 8 years.
• D) A company incurs a charge related restructuring its operations.

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Definitions:

Multiple Sclerosis

A chronic autoimmune disorder affecting the central nervous system, characterized by damage to the myelin sheath on neurons, leading to varied and unpredictable symptoms, including physical and cognitive difficulties.

Firing

The initiation of an action potential in neurons, leading to the transmission of an electrical signal along the neuron's axon.

Neuron

A specialized cell transmitting nerve impulses; a nerve cell.

Action Potential

A brief electrical charge that travels down a neuron, initiating neurotransmission and facilitating neural communication.