Which Statement Is Correct

question 40

Multiple Choice

Which statement is correct?

• A)Diluted EPS decreases the comparability of financial statements.
• B)Diluted EPS decreases the understandability of financial statements.
• C)Diluted EPS addresses the moral hazard information asymmetry.
• D)Diluted EPS is calculated in the same manner as basic EPS.

---

Definitions:

Positive Chvostek's Sign

An indication of neuromuscular excitability seen when tapping on the facial nerve elicits twitching of the facial muscles, often associated with hypocalcemia.

Compensated Heart Failure

A stage in heart failure where the body adapts and manages to maintain normal function despite the heart's reduced ability to pump blood.

Dry Mucous Membranes

A condition characterized by the drying of mucous membranes, which may be a sign of dehydration or side effects of certain medications.

Acute Pancreatitis

A sudden inflammation of the pancreas that can cause severe stomach pain and has various causes, including gallstones and excessive alcohol consumption.