Earnings quality is the ability of net income to report the true underlying performance of the company.

Name: Earnings quality is the ability of net income to report the true underlying performance of the company.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Earnings quality refers to the degree to which reported earnings reflect the underlying economic performance of a company. High-quality earnings accurately reflect a company's financial health, while low-quality earnings may distort or mask the true state of its operations.

Earnings Quality Is the Ability of Net Income to Report