A Reason That Equity Earnings Create a Problem in Analyzing

question 48

Multiple Choice

A reason that equity earnings create a problem in analyzing profitability is that equity earnings are:

• A)usually greater than the related cash flow.
• B)less than dividends declared.
• C)more than dividends declared.
• D)extraordinary.
• E)nonrecurring.

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Definitions:

Financial Statements

The formal records of the financial activities and position of a business, individual, or other entity, including the balance sheet, income statement, and cash flow statement.