Many Consultants and Analysts Modify the Numbers Presented in External

question 62

Multiple Choice

Many consultants and analysts modify the numbers presented in external financial statements that comply with GAAP when implementing incentive compensation plans.The main adjustments that companies seem to make,if any,include capitalizing expenditures on

• A)research and development and then amortizing the capitalized expenditures over their useful life.
• B)customer development,advertising,and promotion if these expenditures will benefit future years and then amortizing the capitalized expenditures over their useful life.
• C)employee training that will benefit future years and then amortizing the capitalized expenditures over their useful life.
• D)All of the answers are correct.

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Definitions:

BMI

A calculation known as Body Mass Index evaluates body fat by considering an individual's height and weight, and is used for both adult males and females.

Physiological Basis

Physiological basis refers to the underlying bodily processes and mechanisms that support or give rise to a particular behavior, activity, or condition.

Aggression

Hostile or violent behaviors or attitudes towards others, often with the intention to dominate, harm, or influence.

Thermoregulation

The process by which organisms maintain a constant body temperature.