The quality of earnings refers to the substance of earnings and their sustainability into future periods.

Name: The quality of earnings refers to the substance of earnings and their sustainability into future periods.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The statement is true. The quality of earnings assesses the durability and transparency of a company's earnings, including the consistency of revenue growth, the reliability of expenses, and the accuracy of financial reporting.

The Quality of Earnings Refers to the Substance of Earnings