QUALITY OF EARNINGS Definition

Bookmark and Share

QUALITY OF EARNINGS is the increased earnings due to increased sales and cost controls, as compared to artificial profits created by inflation of inventory or other asset prices.

Learn new Accounting Terms

STATUTORY ACCOUNT is an involuntary account, which is created by law rather than by business need. An example of a statutory account would be taxes.

COST AVOIDANCE is an action taken in the present designed to decrease costs in the future.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.