All of the Following Are Accounting Factors That Can Drive

question 45

Multiple Choice

All of the following are accounting factors that can drive a firm's price-earnings ratio in a given period to be higher than that of other firms in the same industry except:

• A) non-recurring expenses or losses in that period
• B) a greater degree of accounting conservatism that requires expensing R&D or other intangible asset-generating activities
• C) a less conservative accounting stance that uses straight-line depreciation rather than accelerated methods
• D) a greater degree of accounting conservatism regarding accelerated depreciation of PP&E

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