In the Schweser notes it states that a lower accruals ratio means better earnings quality. But in the Schweser Quick Sheet review card it shows that higher ratios are better measures of earnings quality. Which is correct? I am pretty sure that a lower ratio is better for earnings quality.
lower accruals ratios mean higher earnings quality.
Ok thanks…that is what I thought. The quick sheet must be wrong.
there is an erratum item for that.