Question: Using the Earnings Quality Model, Answer the following: Q 8 : Is the proportion of accruals to earnings high enough to warrant investigation? Q 9

 Using the Earnings Quality Model, Answer the following: Q8: Is the

Using the Earnings Quality Model, Answer the following:
Q8: Is the proportion of accruals to earnings high enough to warrant investigation?
Q9: Do the intensity ratios (Net Operating Asset and Intangibles), taken together, indicate a possible red flag for poor earnings quality?
Q10: Are there any trends in the operating expense ratios (Advertising to Sales, SCi&A to Sales, R&D to Sales) that would indicate potential changes to future earnings expectations?
Q11: Looking at Gross Profit Margin, the Unusual Expense Intensity, and the Asset Replacement Ratio, do you see any indication of under- or overstated expenses?
proportion of accruals to earnings high enough to warrant investigation? Q9: Do

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