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Earning Quality Assignment

πŸ“… February 10, 2024 ✍️ Write Paper ⏱ 1 min read

Earning quality is defined as how well firm's earnings represent future cash flows. Several factors affect earnings quality. Which statement is NOT TRUE?

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Accounting users should assess the quality of a company's earnings because reported accounting earnings number is not exactly equal to economic earnings.

Current cash flow is a better proxy for future cash flows than current earnings

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Earnings quality can be defined as the degree of correlation between accounting earnings and its economic income

Conservatism may decrease earnings quality. Get Accounting homework help today

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