Why should shareholders and prospective investors monitor earnings per share closely?
What will be an ideal response?
Shareholders and prospective investors should monitor earnings per share closely. In some instances, the pressure of maintaining a continued growth record in net income or earnings per share has led management to "cook the books" or misrepresent financial information so that the business's bottom line appears better than it actually is. Such fraudulent behavior was the notable downfall of some large companies, and is the reason why the Sarbanes-Oxley Act of 2002 was passed into law. Therefore, it is best not to rely on any one financial measure and to look at the financial statements and other information as a whole.
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The trading-area segment from which a retailer draws customers from the longest distances is the _____ trading area
a. secondary b. satellite c. fringe d. primary
The current ratio may indicate that the company is using its assets effectively
Indicate whether the statement is true or false
A transaction that decreases a liability and increases an asset must also affect one or more other accounts.
Answer the following statement true (T) or false (F)
Which of the following statements regarding enterprise resource planning systems is NOT correct?
A) Most companies using ERP use their system to serve all of the information requirements. B) The primary advantage of ERP systems is that they pull together all of the classic business functions into a single, tightly integrated package. C) All of the business functions running from an ERP system use a common database. D) Making ERP systems integrate with other applications in a business presents a significant technological challenge.