Which of the Following Can Affect Earnings Quality

question 42

Multiple Choice

Which of the following can affect earnings quality?

I. Management's choice of accounting principle
II. Management's choice of dividend policy
III. Management's estimates
IV. Management's discretionary expenditures

• A)I, II, III, and IV
• B)I, II, and III
• C)I, III, and IV
• D)I and III

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Definitions:

Scientific Process

A methodological approach to research that involves observation, hypothesis formulation, experimentation, and conclusion to gain or validate knowledge.

Social Psychologists

Specialists in the field of psychology that study how an individual's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Observation Stage

A phase in research or study where behaviors, conditions, or other phenomena are systematically watched and recorded without intervention.

Vivid Incident

A particularly memorable or striking event that stands out due to its emotional impact or intensity, often influencing people's perceptions and behaviors.