In general, an accounting method or estimate that results in a higher current earnings produces a better quality of operating income.

Question

Quizplus · Accepted Answer

A higher current earnings resulting from a favorable accounting method or estimate may not necessarily indicate a better quality of operating income. It could be a temporary boost in earnings that does not reflect the company's true operating performance, and could mislead investors and stakeholders. A better quality of operating income is one that accurately reflects the company's sustainable operating performance over time.

In General, an Accounting Method or Estimate That Results in a Higher