Which one of the following is an example of sustainable earnings?
A) A gain from corporate restructuring.
B) A loss from debt retirement.
C) A settlement paid by the company for a class action suit.
D) Earnings from repeat customers.

Question

Which one of the following is an example of sustainable earnings? 
A) A gain from corporate restructuring.
B) A loss from debt retirement.
C) A settlement paid by the company for a class action suit.
D) Earnings from repeat customers.

Quizplus · Accepted Answer

Sustainable earnings are recurring earnings that are expected to continue over the long-term. Earnings from repeat customers indicate that the company has a loyal customer base and can count on future revenue from those customers. Choices A, B, and C are all one-time events and do not indicate sustainable earnings.

Which One of the Following Is an Example of Sustainable