Which of the following statements about Economic Value Added (EVA)is NOT true?
A)EVA suggests that in order to make relevant business decisions,we must consider all costs associated with those decisions.
B)Typical financial statements do NOT present all relevant information related to the economic costs associated with generating revenues.
C)Proponents of EVA claim that the EVA measure is more closely related to changes in shareholder value (i.e.,changes in stock prices)than to changes in accounting measures such as earnings per share.
D)All of the above are true.

Question

Quizplus · Accepted Answer

All of the statements about Economic Value Added (EVA) are true. EVA emphasizes the importance of considering all costs associated with business decisions, financial statements may not present all relevant information related to economic costs, and proponents of EVA argue that it is a better measure of shareholder value than traditional accounting measures.

Which of the Following Statements About Economic Value Added (EVA)is