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An analyst prefers profit that comes from sustainable trading rather than one-off sales. She is judging earnings:
AQuarter
BQuality
CQuantity
DQuotient
Answer & Solution
Correct answer: B. Quality
1. Two firms can report the same profit from very different sources.
2. Profit that repeats next year is worth more than a one-off.
3. She is judging the quality of earnings.
_Source: OpenStax Principles of Financial Accounting, Chapter 2, Introduction to Financial Statements._
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