The Amount Earned During the Accounting Period on Each Outstanding

question 95

Multiple Choice

The amount earned during the accounting period on each outstanding share of common stock iscalled

• A) net profits after taxes.
• B) earnings per share.
• C) net income.
• D) a common stock dividend.

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Definitions:

Working Capital

Working capital, rephrased from net working capital, indicates the liquidity available to a business for day-to-day operations, calculated as current assets minus current liabilities.

Net Working Capital

A measure of a company's short-term financial health, calculated as current assets minus current liabilities.

Inventory

The raw materials, work-in-process products, and finished goods that are considered a part of a business's assets that are ready or will be ready for sale.

After-Tax Salvage Value

The net value of an asset after it has been disposed of and all related taxes have been paid.