Final answer:
In the Earnings Approach to assessing business interruptions, the situation is considered resolved when normal earnings are restored, not merely when operations recommence, insurance claims are settled, or repairs are completed.
Step-by-step explanation:
The Earnings Approach is a method used in business interruption insurance and financial analysis that assesses the economic impact of an interruption by estimating what revenues are lost and what expenses continue during the interruption. According to the Earnings Approach, an interruption of business is considered to be over when normal earnings are restored. This means that the business has returned to its typical level of profitability and operational functionality, not just when operations resume, the insurance claim is settled, or the property is repaired.