Which Three of the Following Are Major Flaws in Earnings-

question 16

Multiple Choice

Which three of the following are major flaws in earnings- based management?

• A) It ignores the riskiness of earnings.
• B) It assumes that shareholder value can only be determined in terms of earnings.
• C) It ignores the time value of money.
• D) Profit figures are subjective, and thus open to manipulation and distortion.

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Definitions:

Sequencer Output

A control process that executes a series of instructions in a predefined order to manage outputs.

Control Address

A specific identifier used in computer programming or digital systems to access, manage, or modify the control function of a particular device or process.

Three-dimensional

Relating to an object or space, three-dimensional means having length, width, and depth, and offering a perception of physical volume.

Rectangular Array

A collection of elements or values arranged in rows and columns, forming a rectangle shape, used in programming and mathematics.