Which of the Following Items Is Consistent with Earnings Not

question 48

Multiple Choice

Which of the following items is consistent with earnings not being informative about current performance but are informative about future earnings?

• A) The firm recognizes an unexpected gain
• B) The firm recognizes a fair value gain on a financial asset as a result of a favorable move in interest rates.
• C) The firm recognizes additional expenses this period due to pre-opening costs associated with new stores.
• D) The firm experiences a large jump in sales and earnings as a result of successful research and development of new products.

---

Definitions:

Meta-analysis

A statistical technique that combines the results of multiple studies to determine overall trends.

Doctoral Dissertation

An extensive academic or scientific document completed as part of the requirements for a doctoral degree.

Academic Success

The achievement of desired schooling outcomes, such as high grades, understanding, or obtaining qualifications, according to educational standards.

Physical Attractiveness

How much others perceive an individual's physical attributes as attractive or lovely.