The difference between normal earnings and expected future earnings is:
A) average earnings.
B) excess earnings.
C) ordinary earnings.
D) target earnings.

Question

Quizplus · Accepted Answer

The difference between normal earnings and expected future earnings is referred to as excess earnings. This concept is often used in business valuation, where the value of a company is determined by its ability to generate earnings above a certain "normal" or expected level.

The Difference Between Normal Earnings and Expected Future Earnings Is