Companies often report "non-GAAP" performance measures in their 10-K that exclude income items management feels are not useful to investors in predicting future performance. Which one of the following income items would be least likely to be omitted in determining a company's non-GAAP income measure?

Question

Quizplus · Accepted Answer

Cash bonus compensation is a regular operating expense that reflects the ongoing cost of doing business and is less likely to be omitted in non-GAAP measures. Non-GAAP measures often exclude items considered non-recurring or not reflective of the core operating performance, such as restructuring expenses or goodwill impairments, rather than regular compensation expenses.

Companies Often Report "Non-GAAP" Performance Measures in Their 10-K That