Which of the Following Is Correct About the Difference Between

question 89

Multiple Choice

Which of the following is correct about the difference between basic earnings per share (EPS) and diluted earnings per share?

• A)Basic EPS uses total common shares outstanding,whereas diluted EPS uses the weighted-average number of common shares.
• B)Basic EPS is not a required disclosure,whereas diluted EPS is required disclosure.
• C)Basic EPS is not adjusted for the potential dilutive effects of complex financial structures,whereas diluted EPS is adjusted.
• D)Basic EPS uses comprehensive income in its calculation,whereas diluted EPS does not.

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Definitions:

Inductance

The property of a conductor by which a change in current in the conductor induces an electromotive force in both the conductor itself and in any nearby conductors by mutual inductance.

Hz

The unit of frequency in the International System of Units (SI), denoting the number of cycles per second.

Greeks

Refers to the citizens of Greece, their culture, or the ancient inhabitants known for their contributions to art, philosophy, and science.

Electricity

A form of energy resulting from the existence of charged particles such as electrons or protons, manifesting as an attraction or repulsion between those particles.