When Earnings Differentials Are Adjusted for Such Factors as Age

question 24

Multiple Choice

When earnings differentials are adjusted for such factors as age, education, and marital status, the

• A) differential between the earnings of white males and those of minority males increases.
• B) differential between the earnings of white males and those of minority males decreases.
• C) corrected earnings of minority males are equal to those of similar white men.
• D) corrected earnings of minority males are greater than those of similar white men.

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Definitions:

Exchange Gain

A financial gain resulting from a favorable change in exchange rates affecting the value of foreign-currency-denominated assets or liabilities.

Current-Rate Method

A method used in translating the financial statements of foreign subsidiaries, where all assets and liabilities are translated at the current exchange rate.

Retained Earnings

The portion of a company's profit that is held or retained and not paid out as dividends to shareholders, often used for investment in the business, debt reduction, or to shore up the balance sheet.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, obsolescence, or a decline in value.