COST ACCOUNTING
CAPITAL BUDGETING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Which of the following best describes why the predicted incremental earnings arising from agiven decision are not sufficient in and of themselves to determine whether that decision isworthwhile?
|
|
They do not tell how the decision affects the firmʹs reported profits from an accountingperspective.
|
|
|
They are not easily predicted from historical financial statements of a firm and itscompetitors.
|
|
|
These earnings are not actual cash flows.
|
|
|
They do not show how the firmʹs earnings are expected to change as the result of aparticular decision.
|
Explanation:
Detailed explanation-1: -Which of the following best describes why the predicted incremental earnings arising from a given decision are not sufficient in and of themselves to determine whether that decision is worthwhile? They do not tell how the decision affects the firm’s reported profits from an accounting perspective.
There is 1 question to complete.