When alternative acceptable accounting methods exist, a better quality of earnings generally is produced from selecting an accounting method that has the effect of reporting the

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Quizplus · Accepted Answer

Selecting an accounting method that reports the lowest amount of current earnings is often seen as more conservative and can lead to higher quality of earnings, as it avoids inflating current earnings and provides a more realistic view of the company's financial health.

When Alternative Acceptable Accounting Methods Exist, a Better Quality of Earnings