Answer:
A, it brings into question the quality of earnings.
Explanation:
The quality of earning refers to the amount of income that is as a result of the activities of a company.
for example, if the profits posted by a company is very high as a result of taking decisions like improving sales or reducing the cost of production, it means the quality of earning of that company is high.
Quality of earnings is calculated by ratio by dividing the net cash from operational activities by net income.
the formula, simply put is
Quality of earning ratio = Net cash from operational activities
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Net Income
i hope this helps.
