Question
Which of the following answer choices are correct? Earnings per share is equal to: Select one: a. Net income divided by the total number of
Which of the following answer choices are correct?
Earnings per share is equal to:
Select one:
a. Net income divided by the total number of shares outstanding.
b. Net income divided by the par value of the common stock.
c. Gross income multiplied by the par value of the common stock.
d. Operating income divided by the par value of the common stock.
e. Net income divided by total shareholders' equity.
As seen on an income statement:
Select one:
a. Interest is deducted from income and increases the total taxes incurred.
b. The tax rate is applied to the earnings before interest and taxes when the firm has both depreciation and interest expenses.
c. Depreciation is shown as an expense but does not affect the taxes payable.
d. Depreciation reduces both the pretax income and the net income.
e. Interest expense is added to earnings before interest and taxes to get pretax income.
_____ refers to the changes in net capital assets.
Select one:
a. Operating cash flow
b. Cash flow from investing
c. Net working capital
d. Cash flow from assets
e. Cash flow to creditors
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