Describe the concept of core earnings


Question 1. Describe the concept of "core earnings" as defined by Standard & Poor. What deficiencies in GAAP is this concept designed to remedy? In one paragraph, give your assessment of the usefulness of core earnings.

Question 2. Describe the meaning of the phrase "quality of earnings" as it is currently used in practice, and discuss the importance of this concept in financial statement analysis.

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Finance Basics: Describe the concept of core earnings
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