Which situation below might indicate a com- pany has a low quality of earnings? (a) The same

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Which situation below might indicate a com- pany has a low quality of earnings?

(a) The same accounting principles are used each year.

(b) Revenue is recognized when earned.

(c) Maintenance costs are capitalized and then depreciated.

(d) The financial statements are prepared in accordance with generally accepted ac- counting principles.

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Financial Accounting Tools For Business Decision Making

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Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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Which situation below might indicate a com- pany has a low quality of earnings? (a) The same

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Financial Accounting Tools For Business Decision Making

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