Which of the Following Statements Is True About Earnings Per

question 104

Multiple Choice

Which of the following statements is true about earnings per share?

• A) It represents the profit available to the preferred shareholders.
• B) It evaluates the efficiency with which the company uses their assets to generate sales revenue.
• C) It is the only ratio required to be disclosed on the statement of earnings.
• D) It assesses the ability of the firm to pay their bills as they come due.

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