Which One of the Following Is Used as an Indicator

question 48

Multiple Choice

Which one of the following is used as an indicator that a firm has good-quality earnings?

• A) declining price-earnings ratios
• B) constant price-earnings ratios
• C) cash flow per share that exceeds earnings per share
• D) earnings per share that exceed cash flow per share
• E) positive earnings per share

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Definitions:

Null Hypotheses

A hypothesis used in statistical testing that assumes no effect or no difference between treatments or groups.

Correction Factor

An adjustment applied to a calculation or a measurement to correct or compensate for a systematic bias or deviation.

Null Hypotheses

A statement suggesting that there is no significant effect or difference, and any observed deviation is due to chance.

Alternative Hypotheses

In statistical testing, these are hypotheses that suggest there is a difference or effect, in contrast to the null hypothesis, which suggests there is no effect.