The Statement That Is Not Correct Is

question 39

Multiple Choice

The statement that is not correct is:

• A) A business will prefer a longer average inventory turnover time rather than a shorter turnover time.
• B) A business will prefer a shorter settlement time for its accounts receivable rather than a longer settlement period.
• C) An asset turnover figure of 1.5 times is preferred to a figure of 1.2 times.
• D) None of the statements, i.e. all are correct.

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Definitions:

Earnings Per Share

A financial metric that measures the amount of profit allocated to each outstanding share of a company's common stock.

Weighted-average

A calculation method that assigns different weights to data points, used to determine the average value of various items in a dataset that are not equally significant.

Earnings Per Share

Earnings Per Share (EPS) is a financial ratio that indicates the portion of a company's profit allocated to each outstanding share of common stock, measuring its profitability.

Preferred Dividends

Dividends that are paid out to preferred shareholders at a fixed rate before any dividends are paid to common shareholders.