accounting quality

Accounting quality refers to the accuracy, reliability, and fairness of a company's financial statements. High-quality accounting provides true and transparent information about a company's financial health, enabling investors, lenders, and other stakeholders to make informed decisions. It involves honest reporting, adherence to accounting standards, and proper recording of transactions, minimizing errors or manipulations. Good accounting quality reflects a company's genuine performance and ensures trustworthiness, while poor quality can hide problems or distort reality, potentially leading to misguided decisions or loss of confidence.