单选题 Most of the differences among companies with respect to quality of earnings are addressed when companies are compared using:

A、 price to cash flow ratios but not price to earnings ratios.
B、 price to earnings ratios but not price to cash flow ratios.
C、 either price to cash flow ratios or price to earnings ratios.

【正确答案】 A

【答案解析】Most quality of earnings differences between companies (use of aggressive versus conservative accounting methods) are not likely to be a problem when using P/CF ratios, but are a problem when using P/E ratios.