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Accountants and Financial Analysts Criticize Earnings Per Share as a Measure

Question 6

Multiple Choice

Accountants and financial analysts criticize earnings per share as a measure of profitability because it does


A) not consider the amount of shareholders' equity required to generate that level of earnings.
B) not consider the amount of liabilities required to generate that level of earnings.
C) consider the amount of assets required to generate that level of earnings.
D) not consider the amount of assets required to generate that level of earnings.
E) consider the amount of liabilities required to generate that level of earnings.

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