Why should I choose AnalystNotes?
AnalystNotes specializes in helping candidates pass. Period.
Basic Question 13 of 13
High-quality earnings are, by definition, ______.
B. accurate
C. conservative
A. repeatable
B. accurate
C. conservative
User Contributed Comments 6
| User | Comment |
|---|---|
| Naufil2004 | Why is the last choice incorrect? |
| Gina | conservatism is an accounting concept by which you present your results with the least favorable figures. you can report conservatively, but run your business in such a way that your earnings wildly fluctuate from year to year (in which case they would not be considered of high-quality). |
| chenyx | High-quality earnings are repeatable,and result from the use of conservative accounting priciples that do not result in overstated revenues or understated costs. |
| olagbami | yeah right |
| vatsal92 | It is High-quality only if it's repetitive. |
| tunjihpmtd | yeah .correct |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
describe the financial reporting treatment and analysis of non-recurring items (including discontinued operations, unusual or infrequent items) and changes in accounting policies
CFA® 2024 Level I Curriculum, Volume 2, Module 2.