Economic Value Added Is

Multiple Choice

Economic value added is

A) essentially the same as residual income except that adjustments are made to liabilities and assets to eliminate "accounting distortions" caused by interest expense.
B) essentially the same as residual income except that adjustments are made to income and assets to eliminate "accounting distortions" that arise from following generally accepted accounting principles.
C) the use of qualitative and quantitative measures to evaluate performance.
D) essentially the same as residual income except that adjustments are made to income and assets to eliminate "accounting distortions" caused by noninterest-bearing current liabilities.