M5-O1-Capital M 2009: Which of the following statements is not true in measuring earnings?

For the income measurement, there are two approaches such as transaction approach and capital maintenance concept

Capital maintenance approach is more related to measurement problem, while transaction approach is more related to revenue recognition issues.

The current GAAP is based on the transaction approach framework, but is moving toward capital maintenance concept approach.

the transaction approach is more focused on the accounts on balance sheet.

M8-O1-earnings quality 2009: Which one is not a main question when you evaluate earnings' quality?

Source of revenue and persistent of revenues

Gross profit ratio

relationship between earnings and the market price of the common stock

Debt to equity ratio and total amounts of liabilities.