Which of the following statement is correct? O Federal Reserve Bank (FRB) helps establish accounting rules know as General Accepted Accounting Principles (GAAP) to promote standardization of the accounting format. O The income statement records the assets, liabilities, and equity accounts at one point in time, usually at the end of the accounting period. O All the answers are incorrect. O The income statement measures a firm's profitability over a period of time. O Depreciation is not tax-deductible expense and it reduces the cash flows of the firm. INCOME STATEMENT Net Sales $10,000,000 Cost of Goods Sold $4,160,000 Gross Profit $5,840,000 Depreciation Expense $1,200,000 S&A Expenses $832,000 Operating Income $3,808,000 (EBIT) Interest Expense $2,100,000 Income before Taxes $1,708,000 Income Taxes (42%) $717,360 Net Income $990,640 Accenture plc has the income statement shown above. What is the Earnings Per Share EPS if the firm has 4 million common shares? Round your answers. none of the answers is correct O $0.73 O $0.25 O $0.11 O $0.95 Which of the following statement is correct? O Asset activity ratios measure the ability of a firm to meet its short-term obligations. O Financial managers use financial ratios of a specific firm, similar to a doctor's blood test examination, to assess the U.S. economy and its annual trade deficit. O Current Ratio measures the ability of the firm to convert its liquid assets (excluding inventory) into cash so as to cover maturing liabilities. Times Interest Earned ratio measures the raw earning power of the firm to service the fixed interest on outstanding debt. O All the answers are incorrect. to see whether to Primarily, bankers and other lenders use extend short-term credit to a firm. none of the answers is correct. O liquidity ratios O debt ratios. O Du Pont ratios O market to book value ratios