Which One of the Following Items Is Not a Way

question 2

Multiple Choice

Which one of the following items is not a way for management to influence EPS computations to meet target goals?

• A) measurements of impairments on plant, property and equipment
• B) determination of tax contingencies
• C) recording the sale of merchandise on account
• D) choice of inventory cost flow assumptions

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Definitions:

User Costs

The expenses associated with the use of a product or service, including maintenance, repair, and opportunity costs of capital tied up in ownership.

Nonrenewable Resource

A natural resource that cannot be replenished or takes millions of years to form again, such as coal, oil, and natural gas.

Future Profits

This concept pertains to the expected earnings or gains that a business anticipates receiving in the upcoming periods.

Current Extraction

The process of removing natural resources, such as minerals or timber, from the earth at the present time.