The J.Book Company wants to indicate to its shareholders how successful it has been.To do this, it uses the ____ as an indicator of its success.
A) inventory turnover
B) earnings per share
C) acid-test ratio
D) current ratio
E) activity ratio

Question

Quizplus · Accepted Answer

Earnings per share is a financial ratio that calculates the net income earned by the company per outstanding share of its common stock. It is a measure of profitability and can be used to indicate whether the company has been successful in generating profits. Shareholders can use this ratio to assess the company's performance and determine the return on their investment.

The JBook Company Wants to Indicate to Its Shareholders How Successful