Earnings that are high quality would a. be informative about current performance

Question

Earnings that are high quality would

a. be informative about current performance and provide information about the long-run sustainability of profits.

b. be informative about past performance and provide information about the long-run sustainability of profits.

c. be informative about current performance and provide information about the long-run sustainability of assets.

d. be informative about past performance and provide information about the long-run sustainability of assets and liabilities.

e. be informative about future performance and provide information about the short-run sustainability of assets and liabilities.

Explanation / Answer

a) be informative about current performance and provide information about the long run sustainabaility of profits.

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