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:

Fiscal Policy

Government actions intended to spark or diminish consumption.

Monetary Policy

Manipulations in the interest rates, the banking rules, and the volume of currency in a country, with a goal to spark or diminish consumption.

Budget Deficit

The financial situation where a government's expenditures exceed its revenues within a specific time period, leading to borrowing or debt accumulation.

Open Door Policy

A policy in which a company or nation maintains openness to trade with all countries or offers unhindered access to its services or office to its personnel.