12: Evaluating Quality of Financial Reports Flashcards
1
Q
High quality balance sheet reporting is indicated by:
A
- Completeness
- Unbiased measurement
- Clear presentation
2
Q
Financial reporting can be GAAP compliant, but not decision useful when:
A
- Biased accounting choices (aggressive vs conservative)
- Earnings Management (smoothing)
3
Q
High quality earnings assumes:
A
high quality reporting
4
Q
High quality reporting, could result in earnings quality that is:
A
either high or low
