Which of the Following Is Not an Indicator of a High

question 62

Multiple Choice

Which of the following is not an indicator of a high earnings quality?

• A) Gain on the disposition of a discontinued operation
• B) Proper revenue and expense recognition
• C) Improving earnings from operations as a percentage of sales
• D) Low operating expenses as a percentage of sales

---

Definitions:

Favorable Response

A positive reply or reaction to a request, proposal, or situation.

Recommendations Placement

The strategic positioning of suggestions or advice, often in a document or presentation, to ensure maximum impact.

Knowledge Management System

A technology-based system designed to help organizations capture, store, and manage knowledge to improve various processes.

Centralized Database

A database located and maintained in a single location, accessible by users from different locations through a network.