Question
All of the following implicate and could lessen the quality of earnings, except : a. Companies provide full and transparent information to investors in the
All of the following implicate and could lessen the quality of earnings, except:
a. Companies provide full and transparent information to investors in the notes to the financial statements so the the statements will not mislead or confuse.
b. Companies sometimes report pro forma income measures that do not follow U.S. generally accepted accounting principles.
c. Companies use alternative accounting methods that hamper comparability.
d. Companies sometimes recognize revenue prematurely and defer expense recognition resulting in reporting income and/or expenses in the wrong period.
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