Investors and Analysts Are Sometimes Urged to Ignore Traditional GAAP

Multiple Choice

Investors and analysts are sometimes urged to ignore traditional GAAP numbers and instead focus on nonstandard "pro forma" numbers because

A) the political compromises made to achieve consensus when issuing FASB pronouncements lead to inaccurate portrayals of underlying events.
B) management believes the pro forma numbers portray the company in a better light.
C) the pro forma numbers are closer to those reported under international reporting standards.
D) pro forma numbers are easier to understanD.