1.The quality of earnings suggests that

A.

net income is the best measure of the results of operations.

B.

continuing operations andone-time transactions are of equal importance.

C.

income from continuing operations is a more relevant predictor of future performance than income fromone-time transactions.

D.

stockholders want the corporation to earn enough income to be able to pay its debts.

2.An auditor report by independent accountants

A.

gives investors assurance that thecompany's stock is a safe investment.

B.

is ultimately the responsibility of the management of the client company.

C.

gives investors assurance that thecompany's financial statements conform to GAAP.

D.

ensures that the financial statements areerror-free.

3. Other comprehensive income

A.

includes extraordinary gains and losses.

B.

has no effect on income tax.

C.

affects earnings per share.

D.

includes unrealized gains and losses onavailable-for-sale investments.