In the Hertz fraud, the company tried to explain its use of non-GAAP financial measures by:
A) Comparing them to aggressive but ethical measurements
B) Comparing the validity of the amounts to pre-tax GAAP income
C) Having a conference call with financial analysts to explain their position
D) Correcting problems in internal controls

Question

Quizplus · Accepted Answer

Hertz compared the validity of its non-GAAP financial measures to pre-tax GAAP income as a way to justify their use, which was part of the controversy surrounding their financial reporting practices.

In the Hertz Fraud, the Company Tried to Explain Its