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Identify the two underlying assumptions upon which profiling is based.
Ratios
Ratios are financial metrics derived from a company's financial statements, used to evaluate aspects such as its profitability, liquidity, and solvency.
Ratio Computation
The process of calculating financial ratios, which are mathematical tools used to analyze and compare financial statements.
Income Before Taxes
A financial measure indicating the profitability of a company before accounting for its tax expense.
Income Tax Expense
The total amount of income tax a company expects to pay to tax authorities, reflecting the cost of taxes on its pre-tax income.
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