Income Statement, Earnings per Share, Price Earnings Ratio
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1. Define the income statement. Can it be manipulated? Explain(expand on your response)
2. Define the earnings per share and price earnings ratios. How do they affect the stock price? (expand on your response
3. Define materiality. Provide an example.
Reference:
Introduction to Financial Accounting, 11/E, Charles T. Horngren, Stanford University, Gary L. Sundem, University of Washington, John A. Elliott, Baruch College, The City University of New York, Donna Philbrick, Portland State University,ISBN-10: 0133489361 | ISBN-13: 9780133489361 ©2014 • Prentice Hall
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The response provides you a structured explanation of income statement,earnings per share and price earnings ratios. It also gives you the relevant references.
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In compliance with BrainMass rules this is not a hand in ready assignment but is only guidance. C
1. An income statement reports a firm's financial performance over an accounting period. The financial statement has a summary of how the firm gets its revenues and incurs expenses. It shows the net income or loss over the reporting period. The income statement is a major financial statement used by accountants and business owners. The income statement shows the profitability of the company during the time period.
The income statement can be manipulated by overstating or understating the revenue or expenses of the firm. For examples, the net income can be inflated by increasing the sales revenues or by deflating the expenses ...
Education
- BSc , University of Calcutta
- MBA, Eastern Institute for Integrated Learning in Management
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