Earnings are basically the net profits of a company’s operation. Earnings per share (EPS) is the dividend payment made by a company to its shareholders. For an accounting of certain aspects of corporate operations, several other more technical terms are also used as EBIT and EBITDA. These technical terms mean income before interest, taxes, depreciation and net worth is included.

The key factor in determining the fair value of the property or accounts receivable is the discounted cash flow or otherwise known as Earnings per Traded Exchange (APCTX). Other factors which affect the measurement of earnings are the nature of the customer, industry, the current financial situation and world economy. Most of the companies usually report their financial results in real terms i.e. in prices the same as they would be paid in the open market in normal trading conditions.

The income statement of a company earns by charging rent, selling products, receiving cash payments from customers, making advances on loans and using the equity in the company for stock options and dividend payments. The income statement reports the revenue and the expenses separately. The company earns additional revenue through the sales of products and services and the provision of facilities to its customers. The difference between revenue and expense is referred to as the profit or loss.