Many consultants and analysts modify the numbers presented in external financial statements that comply with GAAP when implementing incentive compensation plans.The main adjustments that companies seem to make,if any,include
A)restating inventories to reflect replacement cost.
B)making price-level adjustments so that assets,revenues,and expenses are stated in current-year currency values.
C)using market values of assets at the beginning and end of fiscal periods to reflect the actual decline in the economic value of assets.
D)All of the answers are correct.

Question

Quizplus · Accepted Answer

All of the answers are correct. Companies may make different adjustments to financial statements depending on their specific incentive compensation plan. Adjustments may include restating inventories, making price-level adjustments, and using market values of assets, among others. These adjustments are made to provide a more accurate picture of the company's financial performance and to align incentives with the company's strategic goals.

Many Consultants and Analysts Modify the Numbers Presented in External