aqwerty13402
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- Feb 26, 2024
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- 2024
Can someone please explain to me how normalised earnings is a limitation? I get WHAT it is (i.e. The earnings adjusted to take into account cyclical upswings or downswings in the economy, or to remove one-time influences) but I dont get what the actual limitation is. Is it:
A. That once they normalise the earnings, its no longer accurate so it's misleading
or
B. The limitation is that some businesses DONT normalise earnings
Sorry, the two business studies teachers are literally saying two different things and my exam is tomorrow at 8am. I am stressed.
A. That once they normalise the earnings, its no longer accurate so it's misleading
or
B. The limitation is that some businesses DONT normalise earnings