Which of the Following Items Is Consistent with Earnings Being

question 8

Multiple Choice

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

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Definitions:

Closure Report

A final document summarizing the outcomes, achievements, and lessons learned from a project or initiative once it has concluded.

Further Action

Implies steps or measures that need to be taken following an initial action, review, or assessment.

Subject Lines

The title or heading of an email or memo that summarizes its content or purpose.

Positive Wording

The use of language that conveys optimism, affirmation, or a positive perspective, often used to encourage constructive outcomes or perceptions.