Purchase Solution

High Quality of Earnings

Not what you're looking for?

Ask Custom Question

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?

Purchase this Solution
Solution Summary

The solution determines high quality of earnings.

Solution Preview

A high income does not mean a high quality of earnings for the organization overall, due to the fact that it has been proven that there are many corporate executives that are making tremendous ...

Solution provided by:
Marcel Parker, MPA
Education
  • Criminal Justice, Elizabeth City State University
  • Master of Public Administration, North Carolina Central University
Recent Feedback
  • "Excellent work, from the time of my post to the time I received a response was days ahead of my requirements. "
  • "Great, Thank You for our Help!!"
  • "Excellent, thank you "
  • "Thank you"
  • "Thank you!"
Purchase this Solution
Free BrainMass Quizzes
Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

View More Free Quizzes
Related BrainMass Solutions

  • High Quality Earnings and Sustainable Income

    499773 High Quality Earnings and Sustainable Income What is the Definition of the "High Quality of Earnings"? Why is this important in an organization? What is the Definition of "Sustainable Income"?

  • Elgin Electronics: External Factors and Price-Earnings Ratio

    Remember we have discussed "quality of earnings".

  • Finance Questions

    Income statements can be manipulated to a certain extent in order to report either higher or lower net earnings. If a firm uses sound, conservative accounting practices, the quality of earnings is deemed high.

  • difference in IPO earnings forecasts

    Further, the study has noticed that bad new in earnings has been reported n a timely manner by Big-6 auditees than others. The article tries to equate the quality of IPO earnings forecasts and audit quality.

  • Core Earnings and Quality of Earnings

    The amount of earnings attributable to higher sales or lower costs rather than artificial profits created by accounting anomalies such as inflation of inventory. Quality of earnings is considered poor during times of high inflation.

  • Statement of cash flows

    There is very limited scope of manipulation when it comes to cash flows. Cash flows indicate 'quality of earnings'. A high net income with zero or negative cash flow is a sign of distress and income manipulation.

  • Financial statements and ratios

    The denominator (earnings) is based on an accounting measure of earnings which is susceptible to forms of manipulation making the quality of the P/E only as good as the quality of the underlying earnings number.

  • Compare P/E Ratios

    c) Use these data to compare the quality of each company's earnings.

  • Big-Brand Risks With Exceptional Brew for Continued Growth

    The world's leading coffee retailer of high quality coffee products, Starbucks sells through more than 20,800 retail stores and multiple outlets worldwide.

View More Related Solutions