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)
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