Which One of the Following Is Used as an Indicator

question 28

Multiple Choice

Which one of the following is used as an indicator that a firm has good-quality earnings?

• A)declining price-earnings ratios
• B)constant price-earnings ratios
• C)cash flows per share that exceed earnings per share
• D)earnings per share that exceed cash flow per share
• E)positive earnings per share

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Definitions:

Behaviorism

A theory in psychology that emphasizes the study of observable behaviors and the effects of learning and reinforcement.

B.F. Skinner

An American psychologist known for his work in behaviorism and the development of the theory of operant conditioning.

Psychological Inquiry

A process of exploring and questioning to understand psychological concepts, behaviors, and phenomena.

Scientific Method

A systematic and logical procedure for discovering how things in the universe work, involving observation, hypothesis formation, experimentation, and conclusion.