Multiple Choice
An analyst has calculated the ratio of research and development expenses to sales for a company he is following and noticed that it is significantly lower this year than in the previous years.What might this be an indication of?
A) That management might be attempting to increase current earnings.
B) That management might be attempting to increase future earnings.
C) That the earnings quality is higher than it was before.
D) That the profitability of the company is higher than it was before.
Correct Answer:
Verified
Correct Answer:
Verified
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