What Non GAAP Accounting Method Did Tony Menendez Cite in Blowing

question 86

Multiple Choice

What non GAAP accounting method did Tony Menendez cite in blowing the whistle on Halliburton?

• A) Recording sales that lack economic substance
• B) Failing to write off impaired assets
• C) Bill and hold revenue recognition
• D) Releasing cookie jar reserves to smooth income

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Definitions:

Net Operating Income

A company's revenue minus its operating expenses, excluding taxes and interest.

Work in Process Inventory

Items that are in the process of being manufactured but are not yet complete.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, often analyzed in cost accounting or budgeting.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours allowed for the work done, multiplied by the standard labor rate, indicating the efficiency of labor used in production.