The degree to which earnings are an accurate reflection of underlying economic events for both revenues and expenses, and the extent to which earnings from a company's core operations are improving over time, is:

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The term "earnings quality" refers to the degree to which a company's reported earnings provide an accurate reflection of underlying economic events. It takes into account the extent to which revenues and expenses are recognized appropriately and can help assess the sustainability of a company's earnings over time. Options A, B, and D are not correct because comprehensive income refers to all changes in equity except for owner contributions and distributions, discontinued operations refer to a segment of a company that has been discontinued, and revenue recognition refers to the process of recognizing revenue in accordance with accounting standards.

The Degree to Which Earnings Are an Accurate Reflection of Underlying