The Ratio That Uses the Weighted Average Number of Common

question 56

Multiple Choice

The ratio that uses the weighted average number of common shares in the denominator is the

• A) price earnings ratio.
• B) return on equity.
• C) earnings per share.
• D) payout ratio.

---

Definitions:

Foreign Currency

Currency used in a country other than one's own, implying the need for exchange rate conversion in international transactions or financial reports.

Exchange Rates

The rate at which one currency can be exchanged for another, affecting how international transactions are recorded in financial statements.

Accounts Payable

The amounts a company owes because it purchased goods or services on credit from a supplier or vendor.

Accounts Payable

amounts owed by a business to its suppliers or creditors for goods and services received but not yet paid for.