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Income or loss form discontinued ops would best be regarded by an analyst as a

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1. Income or loss form discontinued ops would best be regarded by an analyst as
   a. sustainable earnings
   b. impairments
   c. transitory earnings
   d. permanent earnings
2. The assessment of earnings quality is best accomplished through use of which of the following?
   a. balance sheet and cash flow
   b. single step FS
   c. single step IS, BS, and cash flow
   d. multiple step IS, BS, and cash flow
3. Which of the following would not require an adjustment to the financial statements?
   a. a company signs a new contract with a customer
   b. a delivery company incurs a loss from disposition of delivery trucks
   c. a company changes the useful life of its equipment from 5 to 8 years
   d. a company incurs a charge related to restructuring ops
4. Which of the following is not considered a motive to manage earnings?
   a. to create optimal manage compensation payments
   b. to create optimal job security for senior management
   c. to create optimal measures of assets and liabilities for balance sheet purposes
   d. to manage reported earnings in order to reduce industry specific actions
5. One definition of earnings management is that it occurs when managers use:
   a. judgement in financial reporting to alter financial reports to mislead stakeholders
   b. an accounting method that is inconsistent with other industry members
   c. more conservative accounting estimates that other companies
   d. pro forma accounting results rather than GAAP
6. Earnings that are high quality would
   a. be informative about current performance and provide information about the long-run sustainability of profits.
   b. be informative about past performance and provide information about the long-run sustainability of profits.
   c. be informative about current performance and provide information about the long-run sustainability of assets.
   d. be informative about past performance and provide information about the long-run sustainability of assets and liabilities.
7. Accounting information should provide a fair and complete representation about a number of a firm's characteristics. Which of the following is not one of those characteristics?
   a. risk
   b. position
   c. performance
   d. conservatism
8. List two incentives managers have to manage earnings upward
9. List 2 incentives that managers may have to manage earnings downward
10. Waste Management: Falsely increased the useful lives of long-lived assets.