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.

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Definitions:

Organizational Learning

The ability of an organization to gain insight and understanding from experience and apply it to improve its practices, strategies, and policies.

Multilevel Systems Model

A perspective that views phenomena, such as organizational behavior, through multiple levels of analysis including individual, group, and organizational levels.

Human Capital Level

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization.

Training And Development Programs

Structured educational processes intended to enhance individuals' skills, knowledge, and competencies.