Different Profitability Measures Can Lead to Different Performance Ranking of Firms

question 78

Multiple Choice

Different profitability measures can lead to different performance ranking of firms. In particular, the following may affect the measure and ranking:

• A)Use of strict Accounting Profit, or an adjusted figure such as EBITDA
• B)The application of accounting standards that vary across countries
• C)The time period over which performance is measured
• D)All of the above

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Definitions:

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