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Basic Question 3 of 5
At the bottom of the quality spectrum of financial reports is:
B. GAAP compliant but very low earnings quality
C. Fictitious transactions
A. Biased choices within GAAP
B. GAAP compliant but very low earnings quality
C. Fictitious transactions
User Contributed Comments 2
| User | Comment |
|---|---|
| timkalt | Could someone explain please? Thanks! |
| dshawkri | Fictitious transactions are poor quality. No high quality GAAP statement would contain fake transactions |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
demonstrate the use of a conceptual framework for assessing the quality of a company's financial reports;
explain potential problems that affect the quality of financial reports;
CFA® 2025 Level II Curriculum, Volume 2, Module 14.