Multiples of EPS to Value Firms Are Referred to As

question 60

Multiple Choice

Multiples of EPS to value firms are referred to as:

• A) ROA
• B) price-earnings ratios
• C) ROCE
• D) Weighted average number of common shares outstanding

---

Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services sold on credit.

Allowance Method

An accounting technique that estimates and records bad debts expense from credit sales based on historical data and analyses.

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts is a contra-asset account that reduces the total receivables on the balance sheet to reflect the amount that is not expected to be collected.

Accounts Receivable

Outstanding payments from customers to a firm for delivered or utilized goods or services pending payment.