Final answer:
To evaluate the quality of earnings affected by a one-time/nonrecurring item or non-operating item, analysts can assess the nature and impact of the item, adjust financial statements to calculate adjusted earnings, and compare them with historical earnings and industry benchmarks.
Step-by-step explanation:
To evaluate the quality of earnings when it is affected by a one-time/nonrecurring item or a non-operating item, an analyst or financial advisor can start by identifying and assessing the nature and impact of the item in question. They can then adjust the financial statements by removing the effects of the non-recurring or non-operating item to calculate the adjusted earnings. This can be done by creating pro forma financial statements or through ratio analysis. Finally, the analyst can compare the adjusted earnings with the company's historical earnings and industry benchmarks to assess the true quality of earnings.