Accounting for the Environment Is a Difficult Area Because

question 19

Multiple Choice

Accounting for the environment is a difficult area because

• A) It is difficult to measure the accounting consequences of environmental issues
• B) Environmental issues extend beyond the entity boundary
• C) As a common good it is hard to value the environment
• D) All of the above

---

Definitions:

Inventory Turnover

A financial ratio indicating how many times a company has sold and replaced inventory over a given period, used to assess efficiency in managing inventory stock.

Earnings Per Share

A company's profit divided by the number of outstanding shares of its common stock, indicating the company's profitability.

Quick Ratio

A liquidity indicator that measures a company's ability to meet its short-term obligations with its most liquid assets.

Marketable Securities

Financial instruments that can be easily converted to cash, typically within one year, such as stocks or bonds.