The term earnings quality refers to the ability of reported earnings to predict a company future earnings.

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The term earnings quality refers to the ability of reported earnings to predict a company future earnings. Which of the following likely would reduce earnings quality.

a. Paying off an account payable outside the discount period.

b. Increasing sales by invoicing January sales in December.

c. Writing inventory down to the lower of cost and net realizable value.

d. Writing goodwill down to reflect impartment loss.

Related Book For answer-question

Managerial Accounting for the Hospitality Industry

ISBN: 978-1119386223

2nd edition

Authors: Lea R. Dopson, David K. Hayes

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Posted Date: Sep 17, 2020 09:00 PM

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The term earnings quality refers to the ability of reported earnings to predict a company future earnings.

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Answer The Correct Answer is b I... View the full answer

Managerial Accounting for the Hospitality Industry

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