Another term for earnings power is:
A) nonrecurrent revenue.
B) nonrecurrent gains.
C) sustainable earnings.
D) net change in equity.

Question

Quizplus · Accepted Answer

Earnings power is a term used to describe a company's ability to generate sustainable earnings over a period of time. Sustainable earnings are earnings that are expected to continue into the future and are not affected by one-time gains or losses, which are classified as nonrecurrent revenue or nonrecurrent gains. Net change in equity refers to the change in a company's equity over time and is not a direct synonym for earnings power.

Another Term for Earnings Power Is