Question

the earning capacity of a business is acessed through​

Answer 1

Answer:

1.How is the earning capacity of a firm assessed by financial statement analysis? Profit and Loss Statement is prepared as a part of financial statements.

2.The amount of accumulated profits and losses are given in this statement.

3. Also, various types of ratios in relation to profitability can be drawn.

Step-by-step explanation:

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Answer 2

Answer:

Answer:How is the earning capacity of a firm assessed by financial statement analysis? Profit and Loss Statement is prepared as a part of financial statements. The amount of accumulated profits and losses are given in this statement. Also, various types of ratios in relation to profitability can be drawn.

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