The quality of earnings is a measure of the difference between this year's earnings and last year's earnings.

Question

Quizplus · Accepted Answer

The quality of earnings refers to the degree to which a company's earnings accurately reflect its true financial performance, including factors such as accounting practices, revenue recognition, and expenses. It is not necessarily a measure of the difference between this year's and last year's earnings.

The Quality of Earnings Is a Measure of the Difference