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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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?
...
O A. They do not tell how the decision affects the firm's reported profits from
an accounting perspective.
O B. They are not easily predicted from historical financial statements of a
firm and its competitors.
O C. They do not show how the firm's earnings are expected to change as
the result of a particular decision.
O D. These earnings are not actual cash flows.
Transcribed Image Text: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? ... O A. They do not tell how the decision affects the firm's reported profits from an accounting perspective. O B. They are not easily predicted from historical financial statements of a firm and its competitors. O C. They do not show how the firm's earnings are expected to change as the result of a particular decision. O D. These earnings are not actual cash flows.
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