Expenses Are

question 127

Multiple Choice

Expenses are:

• A)increases in liabilities resulting from purchasing assets.
• B)increases in assets resulting from operations.
• C)increases in retained earnings resulting from operations.
• D)decreases in retained earnings resulting from operations.

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Definitions:

Plowback Ratio

The proportion of earnings retained by a company after dividends have been paid, often reinvested in the business for growth.

P/E Ratio

The P/E Ratio (Price-to-Earnings Ratio) is a metric used to value a company by dividing its current share price by its earnings per share, indicating how much investors are willing to pay for each dollar of earnings.

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Interest Expense

The cost incurred by an entity for borrowing funds, represented as a charge against its earnings or net income.