Asked by Mitchel Rozwadowski on May 20, 2024

verifed

Verified

Profitability is the ability to generate future revenues and meet long-term obligations.

Future Revenues

Expected income from sales or services that a company plans to earn in upcoming periods.

Long-term Obligations

Commitments or debts that a company is required to pay over a period longer than one year, encompassing both financial and non-financial liabilities.

  • Gain insight into the foundational elements of financial statement analysis, including the evaluation of liquidity, solvency, profitability, and market possibilities.
verifed

Verified Answer

CE
Chiyan EllisMay 20, 2024
Final Answer :
False
Explanation :
Profitability refers to a company's ability to generate income relative to its revenue, operating costs, and other expenses over a certain period of time. It is not directly about generating future revenues or meeting long-term obligations, but rather about the efficiency and effectiveness of a company in generating profits from its current operations.