Question #23
Reading: Reading 12 Evaluating Quality of Financial Reports
PDF File: Reading 12 Evaluating Quality of Financial Reports.pdf
Page: 19
Status: Incorrect
Correct Answer: A
Your Answer: B
Question
High results quality is most likely demonstrated by:
Answer Choices:
A. an adequate level of return that is sustainable
B. high level of earnings determined conservatively
C. GAAP compliant financial reports that are decision useful
Explanation
High results quality occurs if the level of earnings provides an adequate level of return and
that the earnings are sustainable.