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If a firm's financial reports are of low quality, can users of the reports assess the quality of the firm's earnings? Question 1 2 options:
If a firm's financial reports are of low quality, can users of the reports assess the quality of the firm's earnings?
Question options:
Yes, because if financial reports are of low quality, earnings are also of low quality.
Yes, because users can assess earnings quality independently of financial reporting quality.
No because lowquality financial reports are not useful for assessing the quality of earnings.
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