Explain the concept of earnings quality, Financial Accounting

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Explain the concept of earnings quality

Earnings quality and pro forma earnings

Response to the following problem:

Companies often voluntarily provide a pro forma earnings number when they announce annual or quarterly earnings.

Required:

1. What is meant by the term pro forma earnings in this context?

2. How do pro forma earnings relate to the concept of earnings quality?

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Financial Accounting: Explain the concept of earnings quality

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Financial Accounting: Explain the concept of earnings quality

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