In the Analysis of Profitability,if Equity Earnings Are Substantial,it Is

question 24

Multiple Choice

In the analysis of profitability,if equity earnings are substantial,it is advisable to:

• A)consider them as extraordinary.
• B)consider them as nonrecurring.
• C)investigate the earning power of the parent outside of the related investing activities.
• D)recompute the debt ratio and times interest earned to remove the impact of equity earnings.
• E)use the DuPont method to lessen the impact of equity earnings.

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Definitions:

Sigmoidoscopy

A medical examination of the sigmoid colon by means of a flexible tube inserted through the anus to check for cancer, polyps, and other anomalies.

Gastroscopy

A diagnostic procedure that involves using a gastroscope to visually examine the interior of the stomach.

Colonoscopy

A medical procedure using a camera to examine the interior lining of the colon and rectum.

Proctoscopy

A medical procedure where a special instrument, called a proctoscope, is used to examine the anal cavity, rectum, or sigmoid colon.