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JAMB Principles of Accounts 2005 Question 48

Question 48

Interpretation of Accounts

Earnings per share is measure of

  1. A.solvency
  2. B.leverage
  3. C.liquidity
  4. D.profitability
Show the answer and explanation

Answer: D (profitability)

Explanation

Earnings per share shows how much profit was earned for each ordinary share, so it measures profitability.