Which Accounting Number Has the Single Greatest Impact on Stock

question 113

Multiple Choice

Which accounting number has the single greatest impact on stock prices?

• A)Total dividends.
• B)Total assets.
• C)Total revenues.
• D)Net income.

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Definitions:

Cash Flow

Cash Flow is the net amount of cash and cash-equivalents being transferred into and out of a business, affecting its liquidity.

Assets

Resources owned by a company, expected to deliver future economic benefits.

Capital Gains

Profit realized from the sale of assets like stocks, bonds, or real estate when the selling price exceeds the purchasing price.

Marginal Tax Rates

The rate at which the last dollar of income is taxed, indicating the rate of tax applied to your next dollar of income.