earnings quality

Maneesh 02 May 2020 at 12:55 PM

Which statements describe indicators of earnings quality?
I. Consistency in reporting policies is an indication of earnings quality.
II. A company with stable earnings levels is an indication of earnings quality.
III. More conservative accounting policies are an indicator of earnings quality.
IV. A company with widely varying earnings levels from year to year is an indication of earnings quality.
A)  I, III, and IV, only.
B)  I and II, only.
C)  II, III and IV, only.
D)  I, II and III, only.

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FACULTY 13 May 2020 at 01:51 PM

I, II and III, only. (option D)

I. Consistency in reporting policies is an indication of earnings quality.

A company with stable earnings levels is an indication of earnings quality.

More conservative accounting policies are an indicator of earnings quality.


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alexx 16 February 2026 at 12:51 AM

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