Question: 1. Reported earnings numbers often contain three distinctly different components possibly subject to different earnings capitalization rates. Which of the following is not one of

1. Reported earnings numbers often contain three distinctly different components possibly subject to different earnings capitalization rates. Which of the following is not one of these components?

Multiple Choice

  • A restructured earnings component.

  • A permanent earnings component.

  • A value-irrelevant earnings component.

  • A transitory earnings component

2. Because income from discontinued operations is not likely to be recurring, it would be considered transitory earnings and be valued at a lower multiple than recurring components (such as income from operations)

true/false

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