The Following Data Have Been Taken from Your Company's Financial

question 93

Multiple Choice

The following data have been taken from your company's financial records for the current year: The price-earnings ratio is

• A) 10.2.
• B) 6.9.
• C) 1.5.
• D) 15.3.

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Definitions:

Common-size Percent

A financial analysis tool that expresses each item in a financial statement as a percentage of a base amount, facilitating comparison across different periods or companies.

Total Assets

The sum of all resources owned by a company, valued in monetary terms, which include buildings, equipment, inventory, and cash.

Cash

A form of liquid asset that includes currency and other assets that are readily convertible to known amounts of cash and can be used to settle debts, purchases, or other transactions.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.