Which of the Following Accounting Measures Indicates the Amount of Stockholder

question 67

Multiple Choice

Which of the following accounting measures indicates the amount of stockholder funds used to finance a firm?

• A) Book value
• B) Actual rate of return
• C) Net profit margin
• D) Earnings per share (EPS)
• E) Price/earnings (P/E) ratio

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Definitions:

Salary Expense

The total amount paid to employees as salaries over a period of time, representing a liability for services received by the business.

Fees Payable

Liabilities or amounts owed by a company for services rendered by others, not yet paid at the balance sheet date.

Balance Sheet

An accounting document showing the worth of a company's assets, debts, and owner's equity on a particular date.

Asset

Resources owned by a business that have economic value and can provide future benefits.