When You Are Listening to Evaluate,which of the Following Factors

question 2

Multiple Choice

When you are listening to evaluate,which of the following factors should cause you to hesitate about accepting the speaker's proposal?

• A) The speaker uses valid evidence.
• B) The speaker has good credentials concerning this topic.
• C) The speaker is emotionally involved with the topic he or she is trying to persuade you about.
• D) The speaker backs up his or her claims with several well-researched examples.

Acknowledge the challenge of classifying highly diversified firms by industry.

Understand the factors affecting the return on common shareholders' equity, including leverage and debt ratios.

Assess the limitations of comparing basic earnings per share across companies and industries.

Analyze financial statements using horizontal analysis, including the calculation of changes over periods.

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Definitions:

Revenues

Income that a company receives from its normal business activities, usually from the sale of goods and services to customers.

Gains

Result primarily from the disposal of assets for more than their cost minus the amount of cost depreciated in the past.

Net Assets

The total assets of an organization minus its total liabilities, indicating the net worth or equity of the company.

Net Sales

Net sales are the amount of revenue generated from sales activities after deducting returns, allowances for damaged or missing goods, and any discounts allowed.