Indicate Whether Each of the Following Statements About Financial Statement

question 34

Short Answer

Indicate whether each of the following statements about financial statement analysis is true or false.
1. Both dividends and earnings performance are indicators of the value of a company's stock.
2. The most widely quoted measure of a company's earnings performance is return on equity.
3. Earnings per share is calculated for a company's common stock.
4. Investors need to understand that the value of a company's earnings per share is affected by its choices of accounting principles and assumptions.
5. The book value per share measures the market value of a corporation's stock.

---

Definitions:

Cones

Photoreceptor cells in the retina of the eye that are responsible for color vision and function best in relatively bright light.

Color Blind

A condition characterized by the inability to see colors in the usual way, affecting the perception of colors.

Humans

Members of the species Homo sapiens, characterized by their ability to use complex language, reason, and create complex social structures.

Color Blind

A condition in which a person is unable to distinguish certain colors or sees colors differently due to a lack of one or more types of color receptors in the eyes.