If You're Standing on Ice Above a Pond and You

question 49

Multiple Choice

If you're standing on ice above a pond and you hear a crack, you should:

• A) remain motionless until the cracking stops.
• B) lie down on the ice to distribute your weight more broadly on the ice.
• C) run as fast as you can to shore.
• D) not worry because the ice will not break.
• E) prepare for a swim.

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Definitions:

Earnings per Share

A financial ratio that measures the amount of a company's net income that is theoretically available for payment to holders of its common stock.

Book Value per Share

The equity available to shareholders divided by the number of outstanding shares, representing a company's assets minus its liabilities on a per-share basis.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Acid-Test Ratio

A financial metric that measures a company's ability to pay its short-term liabilities with its most liquid assets, excluding inventory.