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:

Internet-Based Service

Refers to any service offered over the Internet that enables users to access information, communicate with others, or perform tasks online.

Resource-Based Relative Value Scale

A schema used to determine how much medical providers should be paid, based on the value of the services they provide.

Payment System

A mechanism or a set of instruments that facilitates the transfer of funds from one entity to another, which can be operated by financial institutions, electronic systems, or through manual processes.

Medicare Managed Care

A type of Medicare health plan provided by private companies that contract with Medicare to provide all Part A and Part B benefits and often Part D (prescription drug coverage) as well.