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.

---

Definitions:

Tolerance

The process of becoming less responsive to a substance (such as a drug) or a stimulus after repeated exposure.

Withdrawal

The process of reducing or eliminating the use of a substance after prolonged dependency, often leading to uncomfortable physical and psychological symptoms.

Cardiac Problems

Health issues related to the heart, which can range in severity from minor to life-threatening conditions, including heart disease, arrhythmias, and heart attacks.

Emotional Distress

A state of emotional suffering often characterized by feelings of anxiety, depression, or stress.