Earnings Per Share Is a

question 168

Multiple Choice

Earnings per share is a

• A)profitability ratio.
• B)liquidity ratio.
• C)solvency ratio.
• D)trending ratio.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of the business.

Common-size Comparative Statements

Financial reports that display line items as percentages of a common base figure to facilitate year-over-year or company-to-company comparisons.

Comparative Financial Statements

Financial statements that provide information for multiple periods or dates, allowing for analysis of trends and performance over time.