Generally Accepted Accounting Principles Are Ambiguous in the Determination of a Firm's

Multiple Choice

Generally accepted accounting principles are ambiguous in the determination of a firm's net income because:

A) it does not reflect actual cash inflows and outflows of the firm
B) stock dividends are difficult to forecast
C) depreciation is a cash outlay but is not reflected as such
D) tax laws change regularly which cause the firm to misjudge its true tax obligation