Which of the Following Statements About Financial Ratios Is FALSE

question 110

Multiple Choice

Which of the following statements about financial ratios is FALSE?

• A)When calculating return on assets,preferred dividends are subtracted from net income.
• B)When calculating return on equity,preferred dividends are subtracted from net income.
• C)When calculating the price-earnings ratio,preferred dividends are subtracted from market price per share.
• D)When calculating earnings per share,preferred dividends are subtracted from net income.

---

Definitions:

Merit Pay

A compensation strategy that involves giving employees pay increases based on their performance achievements, as an incentive for productivity and excellence.

Effective Career Planning

A strategic approach to identifying one's career goals and outlining the steps and resources necessary to achieve them.

Workforce

The collective group of individuals engaged in or available for work, either in a specific company or in a country.

Career Planning

The process of setting career goals and outlining steps for achieving them, taking into account one's skills, interests, and job opportunities.