The statement suggesting the quality of earning.

Question

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Answer 1

Question

Chapter 11, Problem

To determine

To Explain: The statement suggesting the quality of earning.

Expert Solution & Answer

Answer

Option d. Income from continuing operations is a more relevant predictor of future performance than income from one-time transactions.

Explanation of Solution

Quality of Earning: Quality of earning refers to the quality of the earning capacity of an organisation which improves with the increase in sales and or the reduction of the cost. The quality of earnings is considered poor when the profits earned by the company are mainly due to the reasons other than the increase in sales and or the reduction of the cost.

Option a, is an incorrect option.
The stockholders want the corporation to earn enough income to be able to pay its debt, explains the general interest of the stockholders and does not relate to the quality of earnings. Hence, option a is incorrect.
Option b, is an incorrect option.
The net income is the best measure for the result of operations does not relate to the quality of earnings. Hence, option b is incorrect.
Option c, is an incorrect option.
Continuing operations and one-time transactions are of equal importance; however, they do not relate to the quality of earnings. Hence, option c is incorrect.
Option d, is the correct option.
The income from continuing operations is a more relevant predictor of future performance than income from one-time transactions. Hence, option d is the correct answer.

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Answer 2

Question

Chapter 11, Problem

To determine

To Explain: The statement suggesting the quality of earning.

Expert Solution & Answer

Answer

Option d. Income from continuing operations is a more relevant predictor of future performance than income from one-time transactions.

Explanation of Solution

Quality of Earning: Quality of earning refers to the quality of the earning capacity of an organisation which improves with the increase in sales and or the reduction of the cost. The quality of earnings is considered poor when the profits earned by the company are mainly due to the reasons other than the increase in sales and or the reduction of the cost.

Option a, is an incorrect option.
The stockholders want the corporation to earn enough income to be able to pay its debt, explains the general interest of the stockholders and does not relate to the quality of earnings. Hence, option a is incorrect.
Option b, is an incorrect option.
The net income is the best measure for the result of operations does not relate to the quality of earnings. Hence, option b is incorrect.
Option c, is an incorrect option.
Continuing operations and one-time transactions are of equal importance; however, they do not relate to the quality of earnings. Hence, option c is incorrect.
Option d, is the correct option.
The income from continuing operations is a more relevant predictor of future performance than income from one-time transactions. Hence, option d is the correct answer.

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Answer 3

Question

Chapter 11, Problem

To determine

To Explain: The statement suggesting the quality of earning.

Expert Solution & Answer

Answer

Option d. Income from continuing operations is a more relevant predictor of future performance than income from one-time transactions.

Explanation of Solution

Quality of Earning: Quality of earning refers to the quality of the earning capacity of an organisation which improves with the increase in sales and or the reduction of the cost. The quality of earnings is considered poor when the profits earned by the company are mainly due to the reasons other than the increase in sales and or the reduction of the cost.

Option a, is an incorrect option.
The stockholders want the corporation to earn enough income to be able to pay its debt, explains the general interest of the stockholders and does not relate to the quality of earnings. Hence, option a is incorrect.
Option b, is an incorrect option.
The net income is the best measure for the result of operations does not relate to the quality of earnings. Hence, option b is incorrect.
Option c, is an incorrect option.
Continuing operations and one-time transactions are of equal importance; however, they do not relate to the quality of earnings. Hence, option c is incorrect.
Option d, is the correct option.
The income from continuing operations is a more relevant predictor of future performance than income from one-time transactions. Hence, option d is the correct answer.

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Answer 4

Question

Chapter 11, Problem

To determine

To Explain: The statement suggesting the quality of earning.

Expert Solution & Answer

Answer

Option d. Income from continuing operations is a more relevant predictor of future performance than income from one-time transactions.

Explanation of Solution

Quality of Earning: Quality of earning refers to the quality of the earning capacity of an organisation which improves with the increase in sales and or the reduction of the cost. The quality of earnings is considered poor when the profits earned by the company are mainly due to the reasons other than the increase in sales and or the reduction of the cost.

Option a, is an incorrect option.
The stockholders want the corporation to earn enough income to be able to pay its debt, explains the general interest of the stockholders and does not relate to the quality of earnings. Hence, option a is incorrect.
Option b, is an incorrect option.
The net income is the best measure for the result of operations does not relate to the quality of earnings. Hence, option b is incorrect.
Option c, is an incorrect option.
Continuing operations and one-time transactions are of equal importance; however, they do not relate to the quality of earnings. Hence, option c is incorrect.
Option d, is the correct option.
The income from continuing operations is a more relevant predictor of future performance than income from one-time transactions. Hence, option d is the correct answer.

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Answer 5

Chapter 11, Problem

To determine

To Explain: The statement suggesting the quality of earning.

Expert Solution & Answer

Answer

Option d. Income from continuing operations is a more relevant predictor of future performance than income from one-time transactions.

Explanation of Solution

Quality of Earning: Quality of earning refers to the quality of the earning capacity of an organisation which improves with the increase in sales and or the reduction of the cost. The quality of earnings is considered poor when the profits earned by the company are mainly due to the reasons other than the increase in sales and or the reduction of the cost.

Option a, is an incorrect option.
The stockholders want the corporation to earn enough income to be able to pay its debt, explains the general interest of the stockholders and does not relate to the quality of earnings. Hence, option a is incorrect.
Option b, is an incorrect option.
The net income is the best measure for the result of operations does not relate to the quality of earnings. Hence, option b is incorrect.
Option c, is an incorrect option.
Continuing operations and one-time transactions are of equal importance; however, they do not relate to the quality of earnings. Hence, option c is incorrect.
Option d, is the correct option.
The income from continuing operations is a more relevant predictor of future performance than income from one-time transactions. Hence, option d is the correct answer.

Answer 6

Chapter 11, Problem

To determine

To Explain: The statement suggesting the quality of earning.

Expert Solution & Answer

Answer

Option d. Income from continuing operations is a more relevant predictor of future performance than income from one-time transactions.

Explanation of Solution

Quality of Earning: Quality of earning refers to the quality of the earning capacity of an organisation which improves with the increase in sales and or the reduction of the cost. The quality of earnings is considered poor when the profits earned by the company are mainly due to the reasons other than the increase in sales and or the reduction of the cost.

Option a, is an incorrect option.
The stockholders want the corporation to earn enough income to be able to pay its debt, explains the general interest of the stockholders and does not relate to the quality of earnings. Hence, option a is incorrect.
Option b, is an incorrect option.
The net income is the best measure for the result of operations does not relate to the quality of earnings. Hence, option b is incorrect.
Option c, is an incorrect option.
Continuing operations and one-time transactions are of equal importance; however, they do not relate to the quality of earnings. Hence, option c is incorrect.
Option d, is the correct option.
The income from continuing operations is a more relevant predictor of future performance than income from one-time transactions. Hence, option d is the correct answer.

Answer 7

Chapter 11, Problem

To determine

To Explain: The statement suggesting the quality of earning.

Answer 8

Expert Solution & Answer

Answer

Option d. Income from continuing operations is a more relevant predictor of future performance than income from one-time transactions.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Quality of Earning: Quality of earning refers to the quality of the earning capacity of an organisation which improves with the increase in sales and or the reduction of the cost. The quality of earnings is considered poor when the profits earned by the company are mainly due to the reasons other than the increase in sales and or the reduction of the cost.

Option a, is an incorrect option.
The stockholders want the corporation to earn enough income to be able to pay its debt, explains the general interest of the stockholders and does not relate to the quality of earnings. Hence, option a is incorrect.
Option b, is an incorrect option.
The net income is the best measure for the result of operations does not relate to the quality of earnings. Hence, option b is incorrect.
Option c, is an incorrect option.
Continuing operations and one-time transactions are of equal importance; however, they do not relate to the quality of earnings. Hence, option c is incorrect.
Option d, is the correct option.
The income from continuing operations is a more relevant predictor of future performance than income from one-time transactions. Hence, option d is the correct answer.

Answer 12

Ch. 11 - Prob. 1QC Ch. 11 - Prob. 2QC Ch. 11 - Prob. 3QC Ch. 11 - Prob. 4QC Ch. 11 - Prob. 5QC Ch. 11 - Prob. 6QC Ch. 11 - Prob. 7QC Ch. 11 - Prob. 8QC Ch. 11 - Prob. 9QC Ch. 11 - Prob. 10QC

The statement suggesting the quality of earning.

To Explain: The statement suggesting the quality of earning.

Answer

Explanation of Solution

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Chapter 11 Solutions