Net Income (Loss)appears in Which Two Financial Statements

question 135

Multiple Choice

Net income (loss) appears in which two financial statements?

• A)Balance sheet and income statement.
• B)Income statement and statement of stockholders' equity.
• C)Statement of stockholders' equity and balance sheet.

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Definitions:

Book Value per Share

This is the equity available to common shareholders divided by the number of outstanding shares, indicating the value per share if the company were liquidated.

Return on Total Assets

A financial ratio that measures the efficiency of a company's use of its assets in generating profit, calculated as net income divided by total assets.

Price-earnings Ratio

A metric used in finance to compare a firm's present stock price with its earnings for each share.

Dividend Payout Ratio

A financial ratio that shows the percentage of a company's earnings paid out to shareholders as dividends.