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Which of the Following Statements Is True About Earnings Per

Question 20

Multiple Choice

Which of the following statements is true about earnings per share?


A) It represents the profit available to the preferred shareholders.
B) It evaluates the efficiency with which the company uses their assets to generate sales revenue.
C) It is the only ratio required to be disclosed on the statement of earnings.
D) It assesses the ability of the firm to pay their bills as they come due.

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