Which of the followings is/are drawbacks associated with valuation by comparables with P/S or P/E? Earnings can be negative Company may have no earnings at all Sales may not be representative if products are different Sales can be manipulated i, ii and iii only i and iii only i and ii all

Which of the followings is/are drawbacks associated with valuation by comparables with P/S or P/E? Earnings can be negative Company may have no earnings at all Sales may not be representative if products are different Sales can be manipulated i, ii and iii only i and iii only i and ii all

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 15DQ: How would reported income differ if LIFO rather than FIFO were used when purchase prices are rising?...

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Question

Which of the followings is/are drawbacks associated with valuation by comparables with P/S or P/E?
1. Earnings can be negative
2. Company may have no earnings at all
3. Sales may not be representative if products are different
4. Sales can be manipulated
i, ii and iii

only i and iii

only i and ii

all

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