Income from continuing operations, excluding special or nonrecurring items, is generally regarded as:

Multiple Choice

• value-irrelevant earnings.

• transitory earnings.

• abnormal earnings.

• permanent earnings.

Which one of the following is an example of sustainable earnings?

Multiple Choice

• Gain from corporate restructuring.

• Earnings from repeat customers.

• Loss from debt retirement.

• Expenditures for advertising.

Financial statement forecasts are:

Multiple Choice

• one of the required note disclosures found in each companys annual report.

• essential ingredients of business valuation and credit risk analysis.

• frequently used in determining management compensation.

• filed annually with the SEC by all public companies.

Which of the following is not an accurate statement regarding the compensation committee?

Multiple Choice

• It selects the annual or multiyear performance goals.

• It is comprised of both internal and external directors.

• It selects the performance metrics used.

• It may adjust a calculated award up or down at its discretion.