Which statement about the quality of reported EPS is false?
A)Earnings quality assessments are difficult to make and require considerable expertise in accounting and financial analysis.
B)Reported EPS is not the precise figure that it first appears to be.
C)It is necessary to make adjustments to reported EPS figures when
Making cross-sectional comparisons.
D)Quality of earnings is generally consistent among companies in the same
Industry.

Question

Quizplus · Accepted Answer

The statement "Quality of earnings is generally consistent among companies in the same
Industry" is false. The quality of earnings can vary significantly even among companies in the same industry, due to differences in accounting policies, business models, and other factors. Therefore, it is important to carefully assess the quality of earnings when comparing companies within an industry.

Which Statement About the Quality of Reported EPS Is False