Question

Non-gaap earnings: multiple choice could be considered management's view of permanent earnings. are needed for the correction of errors. are standardized under generally accepted accounting principles are useful to compare two different firms' performance.

Answer 1

Non-gaap earning or pro forma earning are cosidered management's view of permanent earnings. Pro forma earnings are not derived by standard GAAP method and it is projected earnings based on a set of assumptions and often used to present a business plan (in Latin pro forma means "for the sake of form").