To measure a firm's economic performance and position in a given period,it makes sense to measure all of the following except:
A) The daily free cash flow published by the Wall Street Journal
B) Expenses incurred for resources consumed in that period
C) A portion of the long-lived resources consumed during that period
D) The cost of commitments made during that period to pay retirement benefits to employees in future periods

Question

Quizplus · Accepted Answer

The daily free cash flow published by the Wall Street Journal is not a reliable measure of a firm's economic performance and position in a given period as it only reflects a single day's activity and not the overall performance of the firm over a period of time. The other options, expenses incurred for resources consumed, a portion of long-lived resources consumed, and the cost of commitments made for retirement benefits are all relevant measures of a firm's economic performance and position in a given period.

To Measure a Firm's Economic Performance and Position in a Given