Question: Reported earnings typically differ, sometimes considerably, from economic earnings. Nevertheless, it is often argued that reported earnings arc intended simply to provide a source of

Reported earnings typically differ, sometimes considerably, from economic earnings. Nevertheless, it is often argued that reported earnings arc intended simply to provide a "source of information" to investors about the value of the firm. If that is true, might there not be many alternative accounting procedures of equal use to investors? How might one go about evaluating the usefulness of such procedures?

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