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 that "Quality of earnings is generally consistent among companies in the same industry" is false. The quality of earnings can vary significantly among companies within the same industry based on factors such as accounting policies, corporate governance, and business model.

Which Statement About the Quality of Reported EPS Is FALSE