In the Hertz Fraud, the Company Tried to Explain Its

question 56

Multiple Choice

In the Hertz fraud, the company tried to explain its use of non-GAAP financial measures by:

• A) Comparing them to aggressive but ethical measurements
• B) Comparing the validity of the amounts to pre-tax GAAP income
• C) Having a conference call with financial analysts to explain their position
• D) Correcting problems in internal controls

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Definitions:

Current Asset

Assets that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle of the business, whichever is longer.

Current Liability

A company's debts or obligations that are due within one year, appearing on the company's balance sheet and including short-term borrowing, accounts payable, and other liabilities.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

Expense

is an outflow of cash or other valuable assets from a person or company to another entity, representing the cost of operations or services rendered.