An important component of earnings quality is the conservative recognition of net revenues.

Name: An important component of earnings quality is the conservative recognition of net revenues.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Conservative recognition of net revenues is an important component of earnings quality as it ensures that revenues are not overestimated or recognized prematurely. This improves the accuracy and reliability of financial statements and helps to build investor confidence. Therefore, option A is the correct answer.

An Important Component of Earnings Quality Is the Conservative Recognition