I’m studying for my Accounting class and don’t understand how to answer this. Can you help me study?
Earnings are extremely important to a publicly traded company and the creditors
and investors of that company. However, looking at earnings without
regard to the quality of those earnings is hazardous to the health of
creditors and investors.
Why is the determination of earnings quality and persistence important?
Explain recasting of the income statement, and give three examples of items that are recasted.
Explain adjusting of the income statement, and give three examples of items that are recasted.
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