The degree to which earnings are an accurate reflection of underlying economic events for both revenues and expenses, and the extent to which earnings from a company's core operations are improving over time, is:
A) earnings quality.
B) comprehensive income.
C) revenue recognition.
D) discontinued operations.

Question

Quizplus · Accepted Answer

Earnings quality refers to the degree to which earnings are an accurate reflection of underlying economic events for both revenues and expenses, and the extent to which earnings from a company's core operations are improving over time. It is a measure of the reliability and relevance of a company's financial statements. Comprehensive income refers to all changes in equity during a period, including both net income and other comprehensive income. Revenue recognition refers to the accounting principle that determines when revenue should be recognized in a company's financial statements. Discontinued operations refer to a segment or business that a company has disposed of, which is reported separately in the financial statements.

The Degree to Which Earnings Are an Accurate Reflection of Underlying