Earnings are considered to be of lower quality if O cash flow from operating activities is greater than net earnings. O cash flow from financing activities is less than net earnings. O cash flow from operating activities is less than net earnings. O cash flow from investing activities is less than net earnings.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Earnings are considered to be of lower quality if
O cash flow from operating activities is greater than net earnings.
O cash flow from financing activities is less than net earnings.
O cash flow from operating activities is less than net earnings.
O cash flow from investing activities is less than net earnings.
Transcribed Image Text:Earnings are considered to be of lower quality if O cash flow from operating activities is greater than net earnings. O cash flow from financing activities is less than net earnings. O cash flow from operating activities is less than net earnings. O cash flow from investing activities is less than net earnings.
Which of the following would indicate high quality earnings for a company?
O Increasing revenue while cash from operations is stable.
O Increasing net income while cash from operations decreases.
O Revenue and net income that move together.
O Net income and cash flow from operations that move together.
Transcribed Image Text:Which of the following would indicate high quality earnings for a company? O Increasing revenue while cash from operations is stable. O Increasing net income while cash from operations decreases. O Revenue and net income that move together. O Net income and cash flow from operations that move together.
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