The Closing Share Price Is Quoted at 22

question 96

Multiple Choice

The closing share price is quoted at 22.87,with a P/E of 26 and a net change of 1.42.Based on this information,which one of the following statements is correct?

• A)The closing price on the previous day was €1.42 higher than today's closing price.
• B)A dealer will buy the share at €22.87 and sell it at €26.
• C)The share price increased in value between yesterday's close and today's close by €.0142.
• D)The earnings per share are equal to 1/26^th of €22.87.
• E)The earnings per share have increased by €1.42 this year.

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Definitions:

Adjusted Trial Balance

A compilation of all accounts along with their balances, post-adjustment entries, employed during the creation of financial reports.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary accounts to permanent accounts and prepare the company's books for the next period.

End-of-period Spreadsheet

A financial document used to summarize account balances and adjustments at the conclusion of an accounting period before preparing financial statements.

Closing Entries

Entries recorded at the conclusion of a fiscal period to move balances from temporary accounts to permanent ones, thus readying the accounts for the upcoming period.