Measures That Help Predict a Future Result Are Referred to as

question 30

Multiple Choice

Measures that help predict a future result are referred to as

• A)lagging indicators.
• B)earnings per share.
• C)leading indicators.
• D)EVA.

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Definitions:

Indirect Method

A technique used in cash flow statements to adjust net income for changes in non-cash accounts to calculate cash flow from operating activities.

Factory Equipment

This refers to the machinery and tools used in the process of manufacturing goods within a factory setting.

Treasury Stock

Represents shares that were once part of the outstanding shares and have been bought back by the corporation.

Depreciation Expense

An expense recorded to allocate the cost of a tangible asset over its useful life.