Which of the Following Is Least Likely to Affect Analysis

question 30

Multiple Choice

Which of the following is least likely to affect analysis of earnings persistence?

• A) Managerial compensation
• B) Changes in accounting principle
• C) Cyclicality of business
• D) Seasonality of business

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Definitions:

Cash Inflows

Money or other assets that come into a company or economy, often from sales, investments, financing, and other sources.

Cash Payback Period

The duration required for an investment to generate cash flows sufficient to recover the initial outlay or cost.

Net Income

A company's earnings that remain after subtracting all expenses and taxes from total revenue.

Expenditure

Money spent or cost incurred in an organization's efforts to generate revenue, representing the consumption of goods and services.