Which of the Following Items Is Consistent with Earnings Being

question 47

Multiple Choice

Which of the following items is consistent with earnings being informative about current performance and informing the analyst that level of current earnings is sustainable?

• 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.