Which of the following does not affect quality of earnings?
A) Accounting estimates
B) One-time items
C) Accounting methods
D) Industry norms

Question

Quizplus · Accepted Answer

Industry norms do not directly affect the quality of earnings. Quality of earnings relates to the accuracy and reliability of a company's reported earnings, and it can be impacted by accounting estimates and methods, as well as one-time items that can distort the underlying performance of a company. However, industry norms may affect how the quality of earnings is perceived by investors and analysts, as they may use industry benchmarks to assess a company's financial performance.

Which of the Following Does Not Affect Quality of Earnings