1. The use of alternative accounting methods will result in a lower price-earnings ratio.

A : True

B : False

2. Alternative accounting methods, improper recognition, and pro forma income affect

A : asset turnover.

B : quality of earnings.

C : returns on common stockholders equity.

D : trading securities.

3. Which of the following is an example of a liquidity ratio?

A : payout ratio

B : days in inventory

C : gross profit rate

D : times interest earned