Which of the Following Best Describes Why the Predicted Incremental

question 62

Multiple Choice

Which of the following best describes why the predicted incremental earnings arising from a given decision are not sufficient in and of themselves to determine whether that decision is worthwhile?

• A) They do not tell how the decision affects the firm's reported profits from an accounting perspective.
• B) They are not easily predicted from historical financial statements of a firm and its competitors.
• C) These earnings are not actual cash flows.
• D) They do not show how the firm's earnings are expected to change as the result of a particular decision.

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Definitions:

Vocational Education

A program of study that prepares individuals for specific trades, crafts, and careers at various levels from a trade, a craft, technicians, or a professional position in engineering, accountancy, nursing, medicine, and other healing arts, architecture, pharmacy, law etc.

Tuskegee Institute

A historically black college in Alabama established by Booker T. Washington to provide African Americans with educational and vocational training.

Vocational Education

Educational training that provides practical experience and skills for a specific occupation or trade.