Which of the following factors is least likely to affect earnings persistence?
A)Changing price levels
B)Extraordinary items
C)Usual operating costs
D)Accounting methods used

Question

Quizplus · Accepted Answer

Usual operating costs are a regular part of business operations and are expected to continue in the future, thus they are less likely to affect earnings persistence compared to extraordinary items, changing price levels, or accounting methods, which can introduce variability or one-time effects.

Which of the Following Factors Is Least Likely to Affect