Many Consultants and Analysts Modify the Numbers Presented in External

question 63

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

• A)restating inventories to reflect replacement cost.
• B)making price-level adjustments so that assets,revenues,and expenses are stated in current-year currency values.
• C)using market values of assets at the beginning and end of fiscal periods to reflect the actual decline in the economic value of assets.
• D)All of the answers are correct.

---

Definitions:

Adverse Environmental

Conditions or factors in the environment that can cause harm or negative effects on living organisms or ecosystems.

Sporophyte

The diploid, spore-producing phase in the life cycle of a plant that alternates with the haploid gametophyte phase.

Ovule

A plant structure in seed plants that develops into a seed after fertilization, containing a female gametophyte and the egg cell.

Angiosperms

Flowering plants that produce seeds enclosed within a fruit, representing the most diverse group of land plants.