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Which of the Following Statements Is True About Earnings Per

Question 24

Multiple Choice

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


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

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