Accounting earnings

Accounting earnings,

Definition of Accounting earnings:

  1. Accounting earnings are the bottom line of the income statement, and are used to calculate earnings per share (EPS). But because earnings have become a shortcut to determining share prices, some companies manipulate accounts to flatter earnings, whether through aggressive accounting or other tricks that comply with the letter of Generally Accepted Accounting Principles, if not the spirit.

  2. The amount of revenue the company earned for the year.

  3. Accounting earnings is another name for a company’s stated earnings, or net income, which is calculated by taking total revenue and subtracting the costs of doing business such as cost of goods sold, general administrative expenses, depreciation, interest, taxes, etc. Accounting earnings should not be confused with economic earnings, which measure the actual profitability of a company.

Meaning of Accounting earnings & Accounting earnings Definition