In the study of earnings quality by Dichev et al., CFOs stated that current earnings are considered

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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?

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