Music:
I hear almost exclusively FLAC Lossless compressed music in stereo with Klipsch RF62 II speakers. Perfectly! In a non-optimized acoustic space.
Movies:
As I said, Klipsch. 5.1 system behind it. Fabled. Even with ancient Samsung shelf speakers that I can have connected to test out of the cellar once you "enjoy" a movie. For music that would be somewhat too miserably.
All in all:
The AVR is ideal for any home. The inclined interested reader should read the relevant tests to see sound readings that support the above-mentioned sense.