A company had a market price of $12.00 per share, earnings per share of $1.81, and dividends per share of $0.80. Its price-earnings ratio is equal to

A 4.60 B 15.00 C 6.63 D 0.44 E 0.218

Comparative financial statements in which each amount is expressed as a percentage of a base amount and in which the base amount is expressed as 100% are called

A Base line statements. B Comparative statements. C Index statements. D Common-size comparative statements. E General-purpose financial statements.

The statement of cash flows is:

A A financial statement that presents information about changes in equity during a period. B A financial statement that lists the types and amounts of assets, liabilities, and equity of a business on a specific date. C A financial statement that lists the types and amounts of the revenues and expenses of a business for an accounting period. D A financial statement that reports the cash inflows and outflows for an accounting period and that classifies those cash flows as operating activities, investing activities, or financing activities. E The only financial statement that reports the cash balance of a company.

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