The quality of earnings concept indicates that
a. continuing operations and one-time transactions are of equal importance.
b. stockholders want the corporation to earn enough income to be able to pay its debts.
c. income from continuing operations is a more relevant predictor of future performance than income from one-time transactions.
d. net income is the best measure of the results of operations.

C

Explanation:

When there's a continuous income flow from the continuous transactions than income from one time transactions, it shows the effectiveness in the quality of earnings because it ensures a profitable future.

Hence we say that income from continuing operations is a more relevant predictor of future performance than income from one-time transactions.

therefore option C is correct.

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