A high quality of earnings is indicated by:
A)Earnings derived largely from newly introduced products.
B)Declaration of both cash and stock dividends.
C)Use of the FIFO method of inventory during sustained inflation.
D)A history of increasing earnings and conservative accounting methods.

Question

Quizplus · Accepted Answer

A high quality of earnings is indicated by a history of increasing earnings and the use of conservative accounting methods. This shows consistency in generating profits through trustworthy accounting practices.

A High Quality of Earnings Is Indicated By