During the Stock Market Bubbles,the Price/earnings [P/E] Ratio

question 83

Multiple Choice

During the stock market bubbles,the price/earnings [P/E] ratio:

• A)hits high levels.
• B)falls to zero.
• C)becomes negative.
• D)remains constant.
• E)declines to a very low level.

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Definitions:

Recoverable Amount

The estimated amount that can be recovered from an asset's sale or use, typically higher than its net book value.

Canadian GAAP

Generally Accepted Accounting Principles in Canada, a set of standards for financial reporting and accounting.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for preparing financial statements.

Fair Value Accounting

An accounting approach where companies measure and report the value of certain assets and liabilities on a fair value basis.