To assess the quality of a company's reported earnings,it is necessary to know the estimates and methods it uses to compute income.

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Knowing the estimates and methods a company uses to compute income is important in order to assess the quality of their reported earnings. This enables investors and analysts to gain a better understanding of how the company generates its revenues and profits, and to identify any potential red flags or areas of concern. Without this information, it is difficult to evaluate the accuracy, completeness, and sustainability of a company's earnings, and to make informed investment decisions.

To Assess the Quality of a Company's Reported Earnings,it Is