The Chart of Accounts

question 73

Multiple Choice

The chart of accounts:

• A)is a numbered list of all of the business' accounts.
• B)allows accounts to be located quickly.
• C)can be expanded as the business grows.
• D)All of the above are correct.

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Definitions:

Price-Earnings Ratio

A metric used to assess a company's value, comparing its current stock price to its earnings per share.

Long-Term Liabilities

Obligations or debts due by a company that are expected to be paid or settled over a period longer than one year.

Stockholders' Equity

The ownership interest of shareholders in a corporation, represented by the company’s assets minus its liabilities.

Earnings Per Share

A financial ratio calculated by dividing a company's net income by its number of outstanding shares, indicating the profitability per share.