If future earnings are expected to be higher than current earnings (that is, growth in earnings is expected), the P/E will be low. （ ）

Earnings per share (EPS) represents current earnings while price to earnings ratio represents future earnings.

Transitory earnings are current earnings that are likely to be maintained in the future. ( )

A P/E ratio considers _____ A: profits relative to earnings B: price of the stock relative to earnings C: price of a preferred stock relative to earnings D: profits relative to equity

They become accustomed to spending their earnings on drugs.同义句 A: They become used to spending their earnings on drugs B: They become customers of drug shop.

EPS is short for Earnings per Share.

Which of the following will not affect retained earnings?

The company’s earnings dropped in 2018.

Which of the following income may enjoy a reduced tax or exclusion A: Off-the-record income B: Self-employment earnings C: Business earnings D: Income from charitable activities

The CORRECT data flow from one financial statement to the next is: A: statement of retained earnings, income statement, balance sheet, statement of cash flows. B: balance sheet, statement of retained earnings, income statement, statement of cash flows. C: statement of retained earnings, income statement, statement of cash flows, balance sheet. D: income statement, statement of retained earnings, balance sheet, statement of cash flows.