When Considering an Investment,which of the Following Is Not One

question 63

Multiple Choice

When considering an investment,which of the following is not one of the three critical factors used to evaluate future earnings potential of that investment?

• A)Global event factors.
• B)Economy-wide factors.
• C)Industry factors.
• D)Individual company factors.

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Definitions:

Retained Earnings

Accumulated net income left over for a company after it has paid out dividends to its shareholders.

Prior Period Adjustment

Adjustments made to the financial statements of a prior period to correct an error or to account for a retroactive application of new accounting policies.

Retained Earnings

The share of a company's earnings that are held back and not distributed as dividends to its shareholders.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's financial performance.