- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 10. Financial Reporting Quality
- Subject 1. Reporting Quality and Results Quality
CFA Practice Question
High earnings quality means ______.
B. reporting earnings in a conservative way so they appear low
C. neither of the above
A. reporting high earnings
B. reporting earnings in a conservative way so they appear low
C. neither of the above
Correct Answer: C
Reporting high or low earnings does not help forecast future company performance.
User Contributed Comments 1
| User | Comment |
|---|---|
| Antoinepo | We want to have conservative ESTIMATIONS |