In the study of earnings quality by Dichev et al., CFOs stated that current earnings are considered
Question:
In the study of earnings quality by Dichev et al., CFOs stated that “current earnings are considered to be high quality if they serve as a good guide to the long-run profits of the firm.” Discuss how and why current earnings may not be a good barometer of the long-term profits of the firm. How do non-GAAP measures of earnings address this issue?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Ethical Obligations and Decision Making in Accounting Text and Cases
ISBN: 978-1259969461
5th edition
Authors: Steven M. Mintz, Roselyn E. Morris
Question Posted: