A Wall Street Journal article noted that Apple reportedhigher income than its competitors by using a moreaggressive policy for recognizing revenue on futureupgrades to its products. Some contend that Apple’squality of earnings is low. What does the term “quality ofearnings” mean?
A Wall Street Journal article noted that Apple reportedhigher income than its competitors by using a moreaggressive policy for recognizing revenue on futureupgrades to its products. Some contend that Apple’squality of earnings is low. What does the term “quality ofearnings” mean?
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 24DQ
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A Wall Street Journal article noted that Apple reported
higher income than its competitors by using a more
aggressive policy for recognizing revenue on future
upgrades to its products. Some contend that Apple’s
quality of earnings is low. What does the term “quality of
earnings” mean?
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