- CFA Exams
- CFA Exam: Level I 2021
- Study Session 9. Financial Reporting and Analysis (4)
- Reading 29. Financial Reporting Quality
- Subject 1. Reporting Quality and Results Quality
CFA Practice Question
______ are at the bottom of the quality spectrum of financial reports.
B. GAAP compliant but very low earnings quality statements
C. Fictitious transactions
A. Biased choices within GAAP
B. GAAP compliant but very low earnings quality statements
C. Fictitious transactions
Correct Answer: C
User Contributed Comments 2
| User | Comment |
|---|---|
| timkalt | Could someone explain please? Thanks! |
| dshawkri | Fictitious transactions are poor quality. No high quality GAAP statement would contain fake transactions |