Question
The term earnings quality refers to the ability of reported earnings to predict a company future earnings. Which of the following likely would reduce earnings
The term earnings quality refers to the ability of reported earnings to predict a company future earnings. Which of the following likely would reduce earnings quality.
a. Paying off an account payable outside the discount period.
b. Increasing sales by invoicing January sales in December.
c. Writing inventory down to the lower of cost and net realizable value.
d. Writing goodwill down to reflect impartment loss.
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