Business Finance
Need Accounting help with the study of earnings quality

Question Description

In the study of earnings quality by Dichev et al., CFOs stated that the current earnings are considered to be high quality if they serve as a good guide to the long-run profits of the firm. Discuss how and why current earnings may not be a good barometer of the long-term profits of the firm.


Final Answer

markwood (69)
Carnegie Mellon University

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