Which of the Following Is NOT True of the Earnings

question 43

Multiple Choice

Which of the following is NOT true of the earnings normalization process?

• A) Accounting policies applied should be consistent with those of the purchaser.
• B) Future earnings should be based on the net assets' current fair values.
• C) Amounts that are not expected to recur should be adjusted out of our calculations.
• D) All of these statements are true of the earnings normalization process.

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Definitions:

Attribution Theory

A psychological theory that explains how individuals pinpoint the causes of their own and others' behavior.

Internal

Relating to or occurring within an organization or entity.

External

Concerning or located outside of something; relating to or coming from outside an individual or organization.

Continuous Reinforcement Schedules

A method of learning that rewards a behavior every single time it is exhibited.