When Using a Company's Current Earnings to Estimate Future Earnings

question 131

True/False

When using a company's current earnings to estimate future earnings performance,investors normally should exclude discontinued operations and extraordinary items.

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Definitions:

Events

Occurrences or happenings, especially those of significance.

Cognitive Dissonance Theory

A theory suggesting that individuals experience discomfort (dissonance) when they hold conflicting beliefs, attitudes, or values and are motivated to reduce this discomfort.

Boring Task

A task that is perceived as monotonous and uninteresting, often leading to decreased motivation and attention.

Actual Attitudes

The genuine beliefs and feelings an individual holds towards objects, people, or concepts, as opposed to expressed or professed attitudes.