High quality of earnings, Your posts are very good and

High quality of earnings

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Reference no: EM1363154

Your posts are very good and state that management should focus on the success of the business rather than managing income to their benefit. This gets into ethics, where if you keep doing the right thing you will reap the benefits with bonus's and promotions. If you do the wrong thing for your own benefit, it will eventually catch up with you and you will pay the consequences. Management should present financial statements that are transparent to the normal user without attaching too much information so the end user gets overwhelmed. Class, does a high income mean high quality of earnings? What about if a company reports a loss, does that mean that they don't have a high quality of earnings?

Reference no: EM1363154

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