Which Statement Is Correct About Basic EPS

question 25

Multiple Choice

Which statement is correct about basic EPS?

• A)It indicates the profitability attributable to a company's dilutive shares.
• B)It indicates the profitability attributable to a company's ordinary shares.
• C)It indicates the market price attributable to a company's ordinary shares.
• D)It indicates the market price attributable to a company's dilutive shares.

---

Definitions:

Perpetual Inventory Accounts

An inventory system that continuously keeps track of inventory levels and costs, updating the accounts after each purchase or sale.

Subsidiary Ledgers

Detailed records that support summaries contained in the general ledger, often used for accounts receivable and payable.

Job Order

A request or instruction to perform a specific task, often used in manufacturing or service industries to track costs and work.

Equivalent Units

Equivalent units are a concept in cost accounting used to allocate costs to partially completed goods, treating them as if they were a certain number of fully completed units.