A Study by Speidell and Bavishi (1992) Found That When

question 34

Multiple Choice

A study by Speidell and Bavishi (1992) found that when accounting statements of foreign firms were restated on a common accounting basis,

• A) the original and restated P/E ratios were quite similar.
• B) the original and restated P/E ratios varied considerably.
• C) most variation was explained by tax differences.
• D) most firms were consistent in their treatment of goodwill.

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Definitions:

Easily Manipulated

Refers to data or variables that can be quickly and often unethically altered or influenced.

Reliable

A characteristic indicating that something is consistently good in quality or performance; dependable.

Overall Equipment Effectiveness

A ratio that measures the productivity of a piece of equipment.

Workers' Compensation Costs

Expenses incurred by employers for providing benefits to employees who get injured or sick from their job.