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Profit is a key measure of firm performance. Recently investors in the capital markets depend on firm's EPS figures to evaluate firm's profitability. In the
Profit is a key measure of firm performance. Recently investors in the capital markets depend on firm's EPS figures to evaluate firm's profitability. In the article of "Pacioli", he suggested that profit should be pursued in honest and lawful ways. In addition, he discussed about "reasonable profit". What is the implied meaning of "reasonable profit"? Do you think whether the financial statement can show the reasonableness of profit? If yes, how? If no, why not?
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