Which situation below might indicate a company has a low quality of earnings? (a) The same accounting

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Which situation below might indicate a company 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 company’s P-E ratio is high relative to competitors.

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Accounting Tools For Business Decision Making

ISBN: 9780470534786

4th Edition

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

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