Many Companies Assess Performance Using What Are Called Non-GAAP Measures

Multiple Choice

Many companies assess performance using what are called non-GAAP measures of income. These measures violate generally accepted accounting principles by excluding some items when computing company income while including others. For example, some measures exclude charges for depreciation and amortization. Using such measures is an attempt to overcome:

A) Excessive financial regulation.
B) The congruence problem.
C) Unexpected shortfalls in reported income.
D) Gamesmanship by management.