Accountancy, asked by HemNandini, 7 months ago

How the 'Earning capacity of a business' is assessed in a financial statement analysis?

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Answered by Anonymous

4

The amount of accumulated profits and losses are given in this statement. Also, various types of ratios in relation to profitability can be drawn. These ratios can be compared with industry standards to assess the earning capacity.

Answered by Anonymous

9

The amount of accumulated profits and losses are given in this statement. ... Also, various types of ratios in relation to profitability can be drawn. These ratios can be compared with industry standards to assess the earning capacity.

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