Which of the Following Would Indicate High Quality Earnings for a Company

question 41

Multiple Choice

Which of the following would indicate high quality earnings for a company?

• A)Increasing revenue while cash from operations is stable.
• B)Increasing net income while cash from operations decreases.
• C)Revenue and net income that move together.
• D)Net income and cash flow from operations that move together.

---

Definitions:

Market Exit

The process of a company stopping its business operations or leaving a market, often due to unprofitability or strategic realignment.

Concentrated Industry

An industry characterized by a few firms controlling a large market share, leading to reduced competition.

Relatively Small

A comparative term indicating that something is smaller in size, amount, or degree when compared to others in a similar context.

Number of Firms

This refers to the total count of businesses operating within a specific market or industry.