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Firm A and Firm B, both listed automobile manufacturers...

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Accounting

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Firm A and Firm B, both listed automobile manufacturers in mainland China, have the adapted income statement below for year 2019: Additional information: for both firm A and firm B, all research and development expenditures are expensed immediately. Required: Based on the information in the above table, evaluate the quality of earnings of the two firms for year 2019

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