Which Statement About the Quality of Reported EPS Is False

question 26

Multiple Choice

Which statement about the quality of reported EPS is false?

• A) Earnings quality assessments are difficult to make and require considerable expertise in accounting and financial analysis.
• B) Reported EPS is not the precise figure that it first appears to be.
• C) It is necessary to make adjustments to reported EPS figures when making cross-sectional comparisons.
• D) Quality of earnings is generally consistent among companies in the same industry.