It evaluates the company's ability to pay long$-$term debts

$14$ Multiple Choice $6\mathrm{.}66$ points

Earnings per share $($EPS$)$ is calculated using which two components?

$-$ Net income and average shares outstandingTotal revenue and total shares outstandingGross profit and total equityOperating income and number of employees

The cash ratio is considered a stringent measure of liquidity because it includesAccounts receivable and inventoryCash and cash equivalents onlyCurrent assets without current liabilities

Cash, marketable securities$,$ and receivables