What Is Meant by "Earnings Quality

question 112

Multiple Choice

What is meant by "earnings quality"?

• A)A measure of how closely expense accruals correspond to actual expenses without management bias.
• B)A measure to determine management bias by comparing actual reported profits with "true" earnings.
• C)A measure to determine management bias by comparing reported income to actual cash flows.
• D)A measure of how closely earnings correspond to earnings reported without management bias.

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Definitions:

Improvisation

The art of spontaneously creating something without preparation.

Self-correcting Feedback

A mechanism or process that automatically adjusts or corrects the direction of a system or behavior based on its performance or outcome.

Deliberately Ask

The act of posing questions with intention and focus, often to gain information or clarity on a topic.

Accomplishing

The act of achieving or completing a task, goal, or objective successfully through effort, skill, or courage.