Section 7. Summary Q35. Debits and credits On which side of a journal entry are the following transactions recorded? (1) Increases in asset accounts (2)
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Q38. Price to book ratio How is the price to book ratio calculated? A38. Price to book ratio = Market to book ratio = (A)
Section 7. Stock Market Related Ratios Q37. Price earnings (P/E) ratio How is the price earnings (P/E) ratio calculated? A37. Price earnings (P/E) ratio =
Q36. Free cash flow How is the free cash flow calculated? A36. Free cash flow = (A) – (B) – (C) Where, (A) = Cash
Q34. Treasury stock On December 1, 20×1, Entity A purchased 6,000 shares of its own common stock at $25 per share. Par value of common
Q33. Stock dividend (1) On January 25, 20×2, Entity A declared a 5% stock dividend on 800,000 shares of common stock. Par value of common