The statement suggesting the quality of earning.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 11, Problem 1QC

To determine

To Explain: The statement suggesting the quality of earning.

Expert Solution & Answer

Answer to Problem 1QC

Option d. Income from continuing operations is a more relevant predictor of future performance than income from one-time transactions.

Explanation of Solution

Quality of Earning: Quality of earning refers to the quality of the earning capacity of an organisation which improves with the increase in sales and or the reduction of the cost. The quality of earnings is considered poor when the profits earned by the company are mainly due to the reasons other than the increase in sales and or the reduction of the cost.

Option a, is an incorrect option.
The stockholders want the corporation to earn enough income to be able to pay its debt, explains the general interest of the stockholders and does not relate to the quality of earnings. Hence, option a is incorrect.
Option b, is an incorrect option.
The net income is the best measure for the result of operations does not relate to the quality of earnings. Hence, option b is incorrect.
Option c, is an incorrect option.
Continuing operations and one-time transactions are of equal importance; however, they do not relate to the quality of earnings. Hence, option c is incorrect.
Option d, is the correct option.
The income from continuing operations is a more relevant predictor of future performance than income from one-time transactions. Hence, option d is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

What is DSO, assuming a 360 day year?

Ans

Differential Chemical produced 18,000 gallons of Preon and 39,000 gallons of Paron. Joint costs incurred in producing the two products totaled $8,500. At the split-off point, Preon has a market value of $11 per gallon and Paron $3.5 per gallon. Compute the portion of the joint costs to be allocated to Preon if the value basis is used. Provide Answer

Answer 2

Question

Chapter 11, Problem 1QC

To determine

To Explain: The statement suggesting the quality of earning.

Expert Solution & Answer

Answer to Problem 1QC

Option d. Income from continuing operations is a more relevant predictor of future performance than income from one-time transactions.

Explanation of Solution

Quality of Earning: Quality of earning refers to the quality of the earning capacity of an organisation which improves with the increase in sales and or the reduction of the cost. The quality of earnings is considered poor when the profits earned by the company are mainly due to the reasons other than the increase in sales and or the reduction of the cost.

Option a, is an incorrect option.
The stockholders want the corporation to earn enough income to be able to pay its debt, explains the general interest of the stockholders and does not relate to the quality of earnings. Hence, option a is incorrect.
Option b, is an incorrect option.
The net income is the best measure for the result of operations does not relate to the quality of earnings. Hence, option b is incorrect.
Option c, is an incorrect option.
Continuing operations and one-time transactions are of equal importance; however, they do not relate to the quality of earnings. Hence, option c is incorrect.
Option d, is the correct option.
The income from continuing operations is a more relevant predictor of future performance than income from one-time transactions. Hence, option d is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 11, Problem 1QC

To determine

To Explain: The statement suggesting the quality of earning.

Expert Solution & Answer

Answer to Problem 1QC

Option d. Income from continuing operations is a more relevant predictor of future performance than income from one-time transactions.

Explanation of Solution

Quality of Earning: Quality of earning refers to the quality of the earning capacity of an organisation which improves with the increase in sales and or the reduction of the cost. The quality of earnings is considered poor when the profits earned by the company are mainly due to the reasons other than the increase in sales and or the reduction of the cost.

Option a, is an incorrect option.
The stockholders want the corporation to earn enough income to be able to pay its debt, explains the general interest of the stockholders and does not relate to the quality of earnings. Hence, option a is incorrect.
Option b, is an incorrect option.
The net income is the best measure for the result of operations does not relate to the quality of earnings. Hence, option b is incorrect.
Option c, is an incorrect option.
Continuing operations and one-time transactions are of equal importance; however, they do not relate to the quality of earnings. Hence, option c is incorrect.
Option d, is the correct option.
The income from continuing operations is a more relevant predictor of future performance than income from one-time transactions. Hence, option d is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 11, Problem 1QC

To determine

To Explain: The statement suggesting the quality of earning.

Expert Solution & Answer

Answer to Problem 1QC

Option d. Income from continuing operations is a more relevant predictor of future performance than income from one-time transactions.

Explanation of Solution

Quality of Earning: Quality of earning refers to the quality of the earning capacity of an organisation which improves with the increase in sales and or the reduction of the cost. The quality of earnings is considered poor when the profits earned by the company are mainly due to the reasons other than the increase in sales and or the reduction of the cost.

Option a, is an incorrect option.
The stockholders want the corporation to earn enough income to be able to pay its debt, explains the general interest of the stockholders and does not relate to the quality of earnings. Hence, option a is incorrect.
Option b, is an incorrect option.
The net income is the best measure for the result of operations does not relate to the quality of earnings. Hence, option b is incorrect.
Option c, is an incorrect option.
Continuing operations and one-time transactions are of equal importance; however, they do not relate to the quality of earnings. Hence, option c is incorrect.
Option d, is the correct option.
The income from continuing operations is a more relevant predictor of future performance than income from one-time transactions. Hence, option d is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 1QC

To determine

To Explain: The statement suggesting the quality of earning.

Expert Solution & Answer

Answer to Problem 1QC

Option d. Income from continuing operations is a more relevant predictor of future performance than income from one-time transactions.

Explanation of Solution

Quality of Earning: Quality of earning refers to the quality of the earning capacity of an organisation which improves with the increase in sales and or the reduction of the cost. The quality of earnings is considered poor when the profits earned by the company are mainly due to the reasons other than the increase in sales and or the reduction of the cost.

Option a, is an incorrect option.
The stockholders want the corporation to earn enough income to be able to pay its debt, explains the general interest of the stockholders and does not relate to the quality of earnings. Hence, option a is incorrect.
Option b, is an incorrect option.
The net income is the best measure for the result of operations does not relate to the quality of earnings. Hence, option b is incorrect.
Option c, is an incorrect option.
Continuing operations and one-time transactions are of equal importance; however, they do not relate to the quality of earnings. Hence, option c is incorrect.
Option d, is the correct option.
The income from continuing operations is a more relevant predictor of future performance than income from one-time transactions. Hence, option d is the correct answer.

Answer 6

Chapter 11, Problem 1QC

To determine

To Explain: The statement suggesting the quality of earning.

Expert Solution & Answer

Answer to Problem 1QC

Option d. Income from continuing operations is a more relevant predictor of future performance than income from one-time transactions.

Explanation of Solution

Quality of Earning: Quality of earning refers to the quality of the earning capacity of an organisation which improves with the increase in sales and or the reduction of the cost. The quality of earnings is considered poor when the profits earned by the company are mainly due to the reasons other than the increase in sales and or the reduction of the cost.

Option a, is an incorrect option.
The stockholders want the corporation to earn enough income to be able to pay its debt, explains the general interest of the stockholders and does not relate to the quality of earnings. Hence, option a is incorrect.
Option b, is an incorrect option.
The net income is the best measure for the result of operations does not relate to the quality of earnings. Hence, option b is incorrect.
Option c, is an incorrect option.
Continuing operations and one-time transactions are of equal importance; however, they do not relate to the quality of earnings. Hence, option c is incorrect.
Option d, is the correct option.
The income from continuing operations is a more relevant predictor of future performance than income from one-time transactions. Hence, option d is the correct answer.

Answer 7

Chapter 11, Problem 1QC

To determine

To Explain: The statement suggesting the quality of earning.

Answer 8

Expert Solution & Answer

Answer to Problem 1QC

Option d. Income from continuing operations is a more relevant predictor of future performance than income from one-time transactions.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Quality of Earning: Quality of earning refers to the quality of the earning capacity of an organisation which improves with the increase in sales and or the reduction of the cost. The quality of earnings is considered poor when the profits earned by the company are mainly due to the reasons other than the increase in sales and or the reduction of the cost.

Option a, is an incorrect option.
The stockholders want the corporation to earn enough income to be able to pay its debt, explains the general interest of the stockholders and does not relate to the quality of earnings. Hence, option a is incorrect.
Option b, is an incorrect option.
The net income is the best measure for the result of operations does not relate to the quality of earnings. Hence, option b is incorrect.
Option c, is an incorrect option.
Continuing operations and one-time transactions are of equal importance; however, they do not relate to the quality of earnings. Hence, option c is incorrect.
Option d, is the correct option.
The income from continuing operations is a more relevant predictor of future performance than income from one-time transactions. Hence, option d is the correct answer.

Answer 12

Ch. 11 - Prob. 1QC Ch. 11 - Prob. 2QC Ch. 11 - Prob. 3QC Ch. 11 - Prob. 4QC Ch. 11 - Prob. 5QC Ch. 11 - Prob. 6QC Ch. 11 - Prob. 7QC Ch. 11 - Prob. 8QC Ch. 11 - Prob. 9QC Ch. 11 - Prob. 10QC

The statement suggesting the quality of earning.

To Explain: The statement suggesting the quality of earning.

Answer to Problem 1QC

Explanation of Solution

Want to see more full solutions like this?

Chapter 11 Solutions