How Do Financial Analysts Refer to Earnings That Correspond Closely

question 38

Multiple Choice

How do financial analysts refer to earnings that correspond closely to cash flows?

• A)Cash flow per share
• B)High quality earnings
• C)Earnings determined on a cash basis
• D)Low quality earnings

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Definitions:

Establishing Evidence

The process of gathering and presenting data or facts to support or prove a point, hypothesis, or legal case.

Construct Validity

The extent to which a test or instrument accurately measures the theoretical construct or concept it is intended to assess.

Assessing Methods

Various techniques or procedures used to evaluate or measure the knowledge, skills, abilities, or characteristics of individuals or groups.

Validity Coefficient

Numeric value representative of the relative strength of an assessment’s validity.