Each of the Following Is a Finding of a Survey

question 24

Multiple Choice

Each of the following is a finding of a survey of CFOs about their perceptions of earnings quality except:

• A) CFOs believe that earnings are high quality when they are sustainable and backed by actual cash flows
• B) CFOs believe that earnings are high quality when they make consistent reporting choices over time
• C) CFOs believe key elements of earnings quality are transparency and predictability
• D) CFOs estimate that income increasing and income decreasing devices to manage earnings show a 50:50 split