A company with low earnings quality is more likely to report ________ than a company with high earnings quality.
A)high earnings in the future
B)low earnings in the future
C)high revenue levels in the future
D)decreasing operating expenses, compared to sales, in the future

Question

Quizplus · Accepted Answer

A company with low earnings quality often has earnings that are not sustainable or are manipulated, which can lead to lower earnings in the future as the true financial health of the company becomes apparent.

A Company with Low Earnings Quality Is More Likely to Report