b)It assumes conversions of all potentially dilutive securities c)It is an expansion of the computation for EPS d)All of the above 11. If a company's share price falls, then its P/E ratio and dividend yield: 12. Which of the following is not a category of financial statement ratios? 13. Funds Flow Statement is an analytical tool in the hands of financial manager. 14. Accrual accounting requires companies to record revenues and expenses when transactions occur, not when cash is exchanged. (a) financial accounting (b) market accounting (c) Accrual accounting (d) None of these 15. Free cash flow signals a company’s ability to pay debt, pay dividends,buy back stock and facilitate the growth of business.