An Analyst Notes That the Net Income of a Major

question 121

Multiple Choice

An analyst notes that the net income of a major corporation grew 10% last year and that it is currently growing at 11%. The analyst concludes that the net income will rise 12% next year. This is an example of a(n) :

• A) audit.
• B) earnings forecast.
• C) credit analysis.
• D) business model.

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Definitions:

Discount

A reduction from the usual cost of something, typically given for prompt or advance payment or to a special category of buyers.

Principal

A principal can refer to the main party involved in a financial transaction or the original amount of a debt or investment before interest.

Wrongful Acts

Actions or behaviors that are illegal or immoral, leading to harm or injury against another person or entity.

Agent

An individual or entity authorized to act on behalf of another (the principal) in dealings with third parties.