Earning quality is defined as how well firm's earnings representfuture cash flows. Several factors affect earnings quality. Whichstatement is NOT TRUE ?
Accounting users should assess the quality of a company'searnings because reported accounting earnings number is not exactlyequal to economic earnings.
Current cash flow is a better proxy for future cash flows thancurrent earnings
Earnings quality can be defined as the degree of correlationbetween accounting earnings and its economic income
Conservatism may decrease earnings quality (this option ismarked wrong)
Earning quality is defined as how well firm's earnings represent future cash flows. Several factors affect earnings qual
-
answerhappygod
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am