Which of the Following Is Not True

question 8

Multiple Choice

Which of the following is not true?

• A) Earnings per share measures the profit made per ordinary share.
• B) Dividend yield measures the actual return that shareholders are receiving on their shares.
• C) The price to earnings ratio compares the market price of a share to the dividends per share.
• D) Dividend cover measures the extent to which profits cover dividend payments.

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Definitions:

Merchandise

Goods that are bought and sold within the retail industry.

Sales on Account

Transactions where goods or services are sold with the agreement that payment will be made at a later date, creating an account receivable.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Operating Expenses

Costs associated with the daily operations of a business, excluding the cost of goods sold.