问题如下：
Financial reports of the lowest level of quality reflect:
选项：
A. fictitious events.
B. biased accounting choices.
C. accounting that is non-compliant with GAAP.
解释：
A is correct.
Financial reports span a quality continuum from high to low based on decision-usefulness and earnings quality (see Exhibit 2 of the reading). The lowest-quality reports portray fictitious events, which may misrepresent the company’s performance and/or obscure fraudulent misappropriation of the company’s assets.
可以解释一下fictitious transaction嘛