Examples of Poor Earnings Quality That Hinder the Forecasting of Expected

question 69

Multiple Choice

Examples of poor earnings quality that hinder the forecasting of expected future earnings include all of the following except:

• A) Earnings dominated by a substantial one-time gain from the sale of real estate tangential to the firm's operations.
• B) Reporting a large expense from a warehouse fire that was not covered by insurance.
• C) A local government corrects a processing error and a firm receives an unexpected rebate on property taxes previously paid.
• D) The company adds equipment that reduces carbon emissions in response to EPA requirements and increases production efficiency.

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Definitions:

Martin Seligman

An American psychologist known for his work on the theory of learned helplessness and his contributions to positive psychology, focusing on character strengths and well-being.

Self-discrepancy

The gap between one's actual self and their ideal or ought self, which can lead to feelings of dissatisfaction or discomfort.

Self-perceptions

The way individuals perceive themselves, including their thoughts, feelings, and awareness of their own abilities and characteristics.

Ideal Self

A person's conception of how they would like to be, representing their goals and aspirations in contrast to their actual self.