Which of the Following Statements About Financial Ratios Is FALSE

question 110

Multiple Choice

Which of the following statements about financial ratios is FALSE?

• A)When calculating return on assets,preferred dividends are subtracted from net income.
• B)When calculating return on equity,preferred dividends are subtracted from net income.
• C)When calculating the price-earnings ratio,preferred dividends are subtracted from market price per share.
• D)When calculating earnings per share,preferred dividends are subtracted from net income.

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Definitions:

Diathesis-stress

A psychological theory that explains disorder as the result of an interaction between a pre-dispositional vulnerability and stress caused by life experiences.

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A neurotransmitter that plays a key role in mood regulation, digestion, sleep, and other bodily functions.

Conflict

A situation or condition in which a person encounters opposition, disagreement, or incompatibility, leading to a state of stress or tension.