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.

---

Definitions:

Magnetic Field

A vector field surrounding magnets and electric currents, exerting force on other magnets and current-carrying conductors.

Alternator Output

The electrical power produced by an alternator, typically used in vehicles to charge the battery and power the electrical system when the engine is running.

Revolving Armature

An armature that rotates within a magnetic field in a generator or motor, converting electrical energy to mechanical energy, or vice versa.

Power Output

The total amount of power, usually measured in watts, that a device can produce or supply.