A quality of earnings ratio: a. is computed as net income divided by net cash provided by

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A quality of earnings ratio:

a. is computed as net income divided by net cash provided by operating activities.

b. that is less than 1 indicates that a company might be using aggressive accounting tactics.

c. that is greater than 1 indicates that a company might be using aggressive accounting tactics.

d. is computed as net cash provided by operating activities divided by total assets.

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Financial Accounting Tools For Business Decision Making

ISBN: 9781119791089

10th Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Jill E. Mitchell

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Question Posted: Feb 23, 2024 11:00 PM

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A quality of earnings ratio: a. is computed as net income divided by net cash provided by

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Financial Accounting Tools For Business Decision Making

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