Economic Value Added Uses "Adjusted After-Tax Operating Profit" as One

question 24

Multiple Choice

Economic value added uses "adjusted after-tax operating profit" as one of its inputs. One purpose of using after-tax profit, rather than operating profit, is to B:

• A) Encourage managers to minimise taxes
• B) Improve information reported to the ASIC
• C) Encourage managers to file tax reports
• D) Remove bias from the EVA calculation

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Definitions:

Significance Level

the probability of rejecting the null hypothesis when it is true, used as a criterion for deciding the outcome of a statistical test.

Car Engine

A machine designed to convert various forms of energy into mechanical force and motion, powering automobiles.

Kilometres

A unit of length in the metric system equivalent to 1,000 meters, commonly used to measure distance.

Significance Level

A statistical measure of how likely it is that an observed difference could have occurred by chance.