List and Explain the Four Alternative Measures of Capacity

question 106

Essay

List and explain the four alternative measures of capacity.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, indicating the company's bottom line.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Dividends Paid

Payments made by a corporation to its shareholder members, usually derived from the company's earnings.

Retained Earnings

The portion of a company's profits not distributed to shareholders as dividends but kept within the company to reinvest in business operations or pay down debt.