Which of the Following Typically Involves the Use of Non-GAAP

question 28

Multiple Choice

Which of the following typically involves the use of non-GAAP accounting?

• A) Strategic matching
• B) A change in accounting estimate that is fully disclosed
• C) Proforma earnings
• D) A change in accounting principle that is fully disclosed

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Definitions:

Discount Rate

The rate applied in DCF assessment to compute the present worth of imminent cash flows.

Internal Rate

Short for Internal Rate of Return (IRR), a financial metric used to estimate the profitability of potential investments by calculating the rate of return at which net present value of all cash flows (both positive and negative) from a project equals zero.

Profitability Index

A capital budgeting tool that measures the ratio of the present value of future cash flows from an investment to the investment's initial cost.

Mutually Exclusive

Situations or events that cannot both occur at the same time.