CFA Practice Question

There are 90 practice questions for this study session.

CFA Practice Question

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.
Correct Answer: I only

I. Earnings quality is the inverse of earnings management.
II. Conservatism in the current financial period may allow aggressiveness in future financial periods.

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