The quality of earnings will be affected by which of the following?

Question

Quizplus · Accepted Answer

All of these factors can affect the quality of earnings. Estimation of building's useful life can impact depreciation expenses and therefore affect the reported earnings. Choice of inventory method can affect the cost of goods sold and ultimately the gross profit reported. Discontinued operations can impact the net income of a company and should be clearly disclosed to avoid misleading information.

The Quality of Earnings Will Be Affected by Which of the Following