All of the Following Are Accounting Factors That Can Drive

question 45

Multiple Choice

All of the following are accounting factors that can drive a firm's price-earnings ratio in a given period to be higher than that of other firms in the same industry except:

• A) non-recurring expenses or losses in that period
• B) a greater degree of accounting conservatism that requires expensing R&D or other intangible asset-generating activities
• C) a less conservative accounting stance that uses straight-line depreciation rather than accelerated methods
• D) a greater degree of accounting conservatism regarding accelerated depreciation of PP&E

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Definitions:

Aldehyde Treatment

A chemical process involving the reaction of an aldehyde group, often resulting in the introduction of new functional groups.

LiAlH4

Lithium aluminium hydride, a powerful reducing agent widely employed in organic chemistry for reducing carbonyl compounds to alcohols.

Primary Alcohol

An alcohol with the hydroxyl group (-OH) attached to a carbon atom that is connected to only one other carbon atom.

Grignard-Based Synthesis

A method of forming carbon-carbon bonds by reacting Grignard reagents (organomagnesium compounds) with electrophiles, crucial in the formation of alcohols, carboxylic acids, and other functional groups.