Explain how to calculate the price-earnings ratio and describe how it is used in analysis of a company's financial condition and performance.
What will be an ideal response?
The price-earnings ratio of a common stock is computed by dividing the stock's market value per share by its earnings per share. The price-earnings ratio represents the stock market's expectations of a company's future performance. Some analysts view a high PE (greater than 20 to 25, for instance) ratio as an indication that a stock is overvalued. A low ratio (less than 5 to 8) may indicate that a stock is undervalued.
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Which of the following is NOT a way for technology to support teamwork?
a. Helps teams resolve conflicts b. Helps team members communicate both internally and externally c. Helps teams process information d. Gathers and presents information
Which of the following is considered part of the process in the systems thinking example of a TPS?
A. Report B. Calculate C. Source Document D. All of these
The fact that human activities typically improve when they are done on a repetitive basis is described by a:
A) normal distribution curve. B) binomial distribution curve. C) learning curve. D) Poisson distribution curve. E) repetition curve.
In preparing the April bank reconciliation for Oscar Company, it was discovered that on April 10 a check was written to pay delivery expense of $45 but the check was erroneously recorded as $54 in the company's books. Which of the following journal entries would correct this error?
A.
| Cash | 54 | |
| Delivery expense | 54 |
B.
| Delivery expense | 45 | |
| Cash | 45 |
C.
| Delivery expense | 9 | |
| Cash | 9 |
D.
| Cash | 9 | |
| Delivery expense | 9 |