Which Statement About the Quality of Reported EPS Is False

question 12

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.

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Definitions:

Trait Variability

The degree to which individual characteristics or traits differ among individuals within a population.

Absolute Sense

A term used to indicate a situation or measurement that is considered or believed to be entirely certain and unequivocal.

Shared Environment

Factors in the environment that individuals living together share and that can contribute to the similarities between them.

Extraversion

A personality dimension that describes the extent to which a person is outgoing, sociable, and energetic, one of the Big Five traits.