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:

Alzheimer's Disease

A progressive neurological disorder that causes the brain to shrink and brain cells to die, resulting in severe memory loss and cognitive decline.

Korsakoff Syndrome

A chronic memory disorder caused by severe deficiency of thiamine (vitamin B1), often associated with alcoholism.

Household Income

The combined gross income of all members of a household, which can include wages, salaries, pension, and other forms of income.

United States

A country in North America known for being the world's largest economy, with a federal system of government.