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When a company uses current value accounting, changes in expected future earnings are recognized in...

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Accounting

When a company uses current value accounting, changes in expected future earnings are recognized in financial statements immediately if markets are working properly. This results in changes in the company's net income. Which of the following statements about this change in net income is correct?

Group of answer choices

The change in net income will reverse.

The change in net income is positive unexpected earnings.

The persistence of the change in net income is low.

The change in net income over time will not be volatile.

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