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Basic Question 7 of 7

Select the correct statement(s).

I. More earnings management results in lower earnings quality.
II. Conservative accounting decisions by management can be interpreted as proof of high earnings quality.

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Craig Baugh

Craig Baugh

Learning Outcome Statements

describe a spectrum for assessing financial reporting quality

explain the difference between conservative and aggressive accounting

CFA® 2024 Level I Curriculum, Volume 3, Module 10.