Question: Which situation below might raise concerns about a company's quality of earnings? Revenue is recognized when performance obligations are satisfied. The financial statements are prepared

Which situation below might raise concerns about a company's quality of earnings?

Revenue is recognized when performance obligations are satisfied.

The financial statements are prepared in accordance with U.S. generally accepted accounting principles.

The same accounting principles are used from year to year.

Customers are encouraged to buy products now at deep discounts so as to increase earnings in the current period.

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