Which ONE of the Following Statements Is True About Fast

question 31

Multiple Choice

Which ONE of the following statements is true about fast growth stocks?

• A) These are firms that grow their sales at above-average rates and are expected to do so for a length of time.
• B) These are firms that grow their earnings at above-average rates and are expected to do so for a length of time.
• C) They generally pay dividends during their fast growth phase.
• D) None of the above.

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Definitions:

Supplies

Materials and items used in the day-to-day operations of a business, which may be considered either current assets or expenses.

Contra-Asset

An account that is used to reduce the balance of a related asset account, with the most common example being accumulated depreciation.

Contra-Revenue

An account deducted from gross revenue or sales, which includes returns, allowances, and discounts, ultimately affecting the net revenue reported.

Purchases Discount

A reduction in the price of goods a company buys, typically for paying early or within a specified time period.