What is meant by the term earnings

quality$?$

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Part $1$

A$.$

Earnings quality refers to the accuracy and verifiability of the information contained in the financial statements. This information is particularly effective in assessing current firm performance.

B$.$

Earnings quality captures the degree to which reported income provides financial statement users with useful information. This information is particularly effective in predicting future firm performance.

C$.$

Earnings quality captures the degree to which reported income has been verified by management. This information is particularly effective in predicting future firm performance.

D$.$

Earnings quality captures the degree to which reported income has been verified by management. This information is particularly useful when looking at the historical performance of a company.