Question

Confirmatory value is central to the financial accounting concept of earnings quality" primarily because: Multiple Choice It allows investors to verify or change their prior assessments of a company's performance. It helps investors predict a company's future earnings. It helps investors predict a company's future cash flows. O It allows investors to compare the performance of a company over time.

Answer 1

Question 1(Requirement 1):-

The correct answer for the question is Option B - It helps the investors predict a company's future earnings. Confirmatory value is a check that allows users to analyse their earlier predictions and whether they are feasible. Confirmatory value provides information about past events and helps analyze data. Through this, it helps the investors predict a company's future cash flows. Hence, this is the right answer.

Option A is incorrect as it does not allow investors to change prior assessments of the company.

Option C is incorrect as it does not allow investors to predict future cash flows

Option D is incorrect as it does not facilitate to measure performance over time but rather allows to predict future performance.

Kindly note that i have answered the first question per the Chegg answering guidelines. Request you to post the remaining question separately so that we can answer them as well. All the best and please let me know if you have any questions via the comments section .