Which One of the Following Is Is Most Likely to Increase

question 49

Multiple Choice

Which one of the following is is most likely to increase the price of a stock?

• A) rapid growth in sales.
• B) rapid growth in dividends.
• C) rapid growth in earnings.
• D) rapid increases in bond interest rates.

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Definitions:

Net Sales

The amount of revenue generated by a company after accounting for returns, allowances, and discounts.

Unadjusted Trial Balance

A preliminary list of all accounts with their balances before any adjustments are made for the end of the accounting period.

Periodic Inventory System

An inventory accounting system where updates to the inventory accounts are made on a periodic basis, rather than continuously.

Merchandise Inventory

Items that a company holds for the purpose of resale to customers in the ordinary course of business.