The Price Earnings Ratio Is the

question 83

Multiple Choice

The Price Earnings Ratio is the

• A) Book value of a share of ordinary share divided by EPS
• B) Market price of a share of ordinary share divided by EPS.
• C) Par value of a share of ordinary share divided by EPS.
• D) Market price divided by book value of a share.

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Definitions:

Consistency

In accounting, the principle that mandates the use of the same accounting methods and practices over time for financial reporting.

Qualitative Characteristics

Aspects that contribute to the usefulness of financial information, including its relevance and reliability.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, presenting the financial performance and position at a given period.