All of the Following Are Accounting Factors That Can Drive

question 45

Multiple Choice

All of the following are accounting factors that can drive a firm's price-earnings ratio in a given period to be higher than that of other firms in the same industry except:

• A) non-recurring expenses or losses in that period
• B) a greater degree of accounting conservatism that requires expensing R&D or other intangible asset-generating activities
• C) a less conservative accounting stance that uses straight-line depreciation rather than accelerated methods
• D) a greater degree of accounting conservatism regarding accelerated depreciation of PP&E

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Definitions:

Visceral

Pertaining to viscera, the internal organs, especially the abdomen.

Parietal Pleura

The outer membrane that lines the inner wall of the thoracic cavity, opposed to the visceral pleura covering the lungs.

Lung Ventilation Scan

A diagnostic imaging test that measures airflow and blood flow in the lungs, often using radioactive materials to view the organ's function.

Inhalation

Inhalation is the process of breathing in air or other gases, including the intake of substances such as medications delivered via the respiratory tract.