Which Statement Is Correct About Earnings Per Share (EPS)

question 81

Multiple Choice

Which statement is correct about earnings per share (EPS) ?

• A)EPS does not need to be disclosed under IFRS.
• B)EPS needs to be disclosed under IFRS.
• C)EPS is calculated for preferred shares.
• D)EPS is a ratio used to assess leverage.

---

Definitions:

Laspeyres Price Index

An index that measures the change in the cost of purchasing a fixed basket of goods and services, using the prices of a base period.

Per Capita Income

A measure of the average income earned per person in a specified area over a defined period of time, often used as an indicator of economic health.

WARP

Weak Axiom of Revealed Preference, a theory in economics that assumes if a consumer prefers product A over B when both are available, then they will not choose B when A is available.

Bundle

An assortment of items or services combined and offered for sale as a complete set.