Examples of Poor Earnings Quality That Hinder the Forecasting of Expected

Multiple Choice

Examples of poor earnings quality that hinder the forecasting of expected future earnings include all of the following except:

A) Earnings dominated by a substantial one-time gain from the sale of real estate tangential to the firm's operations.
B) Reporting a large expense from a warehouse fire that was not covered by insurance.
C) A local government corrects a processing error and a firm receives an unexpected rebate on property taxes previously paid.
D) The company adds equipment that reduces carbon emissions in response to EPA requirements and increases production efficiency.