The quality of earnings is affected by the volatility of a company's sales.

Name: The quality of earnings is affected by the volatility of a company's sales.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The volatility of a company's sales can impact its earnings, leading to lower or inconsistent profits. This is because changes in sales can affect costs, such as production or marketing expenses, and can also impact revenue. A company with stable, predictable sales is more likely to have a stable and high-quality earnings.

The Quality of Earnings Is Affected by the Volatility of a Company's