Which one of the following is most apt to be constant given the percentage of sales approach to creating pro forma statements?
A)book value per share
B)gross margin
C)earnings per share
D)return on equity
E)cash flow per share

Question

Quizplus · Accepted Answer

According to the percentage of sales approach, gross margin is calculated as a percentage of sales revenue, and therefore is relatively constant. Book value, earnings per share, return on equity, and cash flow per share are all affected by various factors other than sales revenue and may fluctuate significantly.

Which One of the Following Is Most Apt to Be